Journal Issue

Second Review Under the Policy Support Instrument and Request for Waiver of Assessment Assessment Criteria—Informational Annex

International Monetary Fund
Published Date:
October 2011
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Appendix I. Uganda: Relations with the Fund

(As of October 31, 2010)

I. Membership Status: Joined: September 27, 1963; Article VIII

II. General Resources Account:

SDR Million%Quota
Fund holdings of currency180.51100.00

III. SDR Department:

SDR Million%Allocation
Net cumulative allocation173.06100.00

IV. Outstanding Purchases and Loans:

SDR Million%Quota
ECF Arrangements5.402.99

V. Latest Financial Arrangements:

TypeDate of


Amount Approved

(SDR Million)
Amount Drawn

(SDR Million)
ECF1Sep 13, 2002Jan 31, 200613.5013.50
ECF1Nov 10, 1997Mar 31, 2001100.43100.43
ECF1Sep 06, 1994Nov 09, 1997120.51120.51

VI. Projected Payments to Fund2

(SDR Million; based on existing use of resources and present holdings of SDRs):


VII. Implementation of HIPC Initiative:

I. Commitment of HIPC assistanceFrameworkFrameworkTotal
Decision point dateApr 1997Feb 2000
Assistance committed
by all creditors (US$ Million) 3347.00656.00
Of which: IMF assistance (US$ million)68.9091.00
(SDR equivalent in millions)51.5168.10
Completion point dateApr 1998May 2000
II. Disbursement of IMF assistance (SDR Million)
Assistance disbursed to the member51.5168.10119.61
Interim assistance--8.208.20
Completion point balance51.5159.90111.41
Additional disbursement of interest income 4--2.062.06
Total disbursements51.5170.16121.67

VIII. Implementation of Multilateral Debt Relief Initiative (MDRI):

I. MDRI-eligible debt (SDR Million)587.73
Financed by: MDRI Trust75.85
Remaining HIPC resources11.88

II. Debt Relief by Facility (SDR Million)

Eligible Debt
January 2006N/A87.7387.73

IX. Safeguards Assessments

Under the Fund’s safeguards policy, assessments with respect to the PSI are voluntary. An update assessment of the Bank of Uganda (BOU) was completed on April 10, 2007 and concluded that the BOU had strengthened its safeguards framework since the 2003 assessment. The main developments included implementation of International Financial Reporting Standards, publication of financial statements, establishment of an audit committee, and strengthening of the internal audit function. Staff made recommendations to address remaining vulnerabilities in the legal and internal control areas.

X. Exchange Rate Arrangement

The official exchange rate is determined on the interbank market for foreign exchange. As of April 29, 2011 the official exchange rate was USh 2375 per U.S. dollar. The exchange system is free of restrictions on the making of payments and transfers for current international transactions. Uganda’s exchange rate regime is classified as floating.

XI. Article IV Consultation

The Executive Board concluded the last Article IV consultation on February 11, 2011. The next Article IV consultation with Uganda will be held on the 24-month cycle, subject to the provisions of the decision on consultation cycles approved on September 28, 2010.

In February and April 2001, joint World Bank/Fund missions visited Kampala as part of the Financial Sector Assessment Program (FSAP). A final report was provided to the authorities in November 2001, and an MFD mission discussed the report with the authorities during the Article IV consultation discussion in November 2002; the Financial System Stability Assessment was prepared for Board discussion in February 2003. In November 2004, a joint World Bank/Fund missions visited Kampala for a FSAP update. More recently, at the request of the authorities, a new FSAP update is scheduled for August, 2011, which once undertaken, would complete a set of FSAP updates for all five EAC members.

XII. Policy Support Instrument (PSI)

The Executive Board approved a new three-year Policy Support Instrument (PSI) and completed the seventh and final review under the previous PSI on May 12, 2010. The new PSI follows on the first three-year PSI, which was approved in December 2006 and extended by one year in 2009, then concluded successfully in May 2010.

XIII. Technical Assistance

Uganda has received extensive technical assistance from the Fund in recent years.6

FAD has continued to provide TA to the Uganda Revenue Authority (URA) in the areas of revenue administration and oil revenue management. In 2010, two IMF FAD technical assistance missions went to Kampala. The first one to advise the authorities on the URA’s modernization program and next phase of revenue administration reforms, and the second one to advise them on the drafting of a new comprehensive budget and public financial management law. FAD continues to provide follow-up TA in several fiscal areas, such as cash management, the design of a comprehensive donor-supported PFM reform strategy, and revenue collection enhancements. During November 2010 a mission from FAD headquarters and AFRITAC worked on redrafting the Public Finance and Accountability Act, in part to build in an oil revenue management framework. The statistical advisor in AFRITAC East has also visited the Uganda Bureau of Statistics several times to advise on rebasing GDP and also to support revisions to the informal cross border trade estimates in the balance of payments.

A TA mission on enhancing the effectiveness of monetary policy implementation and developing financial markets was conducted in August 2005; in April 2006 MCM and the BOU held a joint workshop on financial market development. In 2008 and 2009 MCM has provided TA to build capacity to undertake financial stability analysis and reporting; and more recently MCM has provided TA in the monetary operations area. In August 2010, MCM conducted a multi-topic technical assistance mission to help authorities enhance the central bank capacity in the areas of monetary operations, money market development, and financial stability assessment.

XIV. Future Technical Assistance Priorities

The priorities for Fund technical assistance in the next few years will be in the areas of tax administration and tax policy reforms, oil revenue management, public expenditure management, especially control and monitoring of government arrears, monetary and exchange rate management, bank supervision, national accounts statistics, reporting standards for government finance statistics, monetary and balance of payments statistical reporting, central bank accounting, and audit and debt management.

XV. Resident Representative

The Fund has maintained a resident representative in Uganda since July 1982.

Appendix II. Joint Bank-Fund Work Program, June 2010 – June 2011

TitleProductsProvisional timing of missions (if relevant)Expected delivery date
1. World Bank Work ProgramThe work program will continue to concentrate on areas within the existing portfolio, including infrastructure development (transport and energy), secondary education, health infrastructure, agricultural research, advisory services and training, Kampala infrastructure development, and local government service delivery (including Northern Uganda rehabilitation). In addition, the Bank project to support public service performance enhancement, Northern Uganda social protection, minerals development and environment sustainability will be maintained.
Public Expenditure Review on budget composition trends and efficiency in the road sector will be delivered to client.

Public Expenditure Review on Investment Planning concept discussed with government and work started
May 2010June 2010

December 2010
Poverty Reduction Support Credit to enhance effectiveness of service delivery, public sector management, and human development issues.June 2010August 2010
Strategy paper for GOU’s negotiation with other member states on the efforts towards elimination of non-tariff barriers. Follow-up work on implementation of the report recommendations with particular emphasis on adaptation of experiences from other RECs, in depth study of the diary sector in the region, will be completedSeptember 2010
A new study on shared/spatial growth with special focus on agriculture, labor and integration of leading and lagging areas, will be initiated.June 2010May 2011
2. Fund Work ProgramSeventh Review and Request for a new PSI.March 2010May 2010
Staff visit on the government budgetMay 2010June 2010
2010 Article IV and First review under the PSIOctober 2010February 2011
3. Joint Work ProgramJSAN on the NDP (new PRSP).March 2010April 2010
Joint DSA

Joint DSA update
March 2010

June 2011
May 2010

June 2011

Formerly PRGF.

When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts cannot be added.

Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.

The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.

For a description of technical assistance provided prior to 2006, see the staff report for Uganda’s request for a three-year PSI (IMF Country Report No. 06/43).

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