Abstract
2017 Article IV Consultation and Eighth Review Under the Policy Support Instrument-Press Release; Staff Report; and Statement by the Executive Director Uganda
This supplement reports on new information received by staff on the incurrence of external payment arrears by Uganda since the staff report was prepared. These developments do not alter the thrust of the staff appraisal.
Staff has been informed that Uganda has incurred external arrears to a Norwegian company in May 2017. Payment of the debt was due on May 17, 2017, and resulted in a non-observance of the continuous assessment criterion (CAC) on the zero ceiling of external payment arrears on June 17, 2017. The Ugandan authorities have not yet cleared these arrears, have written to the creditor, and undertake to clear the arrears during July 2017.
Staff supports a waiver of the CAC on external arrears in order to complete the Eighth Review under the PSI on the grounds that the authorities are taking corrective action. The authorities have committed to take corrective action by ensuring that payment is made during July 2017. Staff regrets the incurrence of external arrears and encourages the authorities to pay without further delay.