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Uganda Not Worried China Will Seize Assets Over Rising Debt

Uganda's growing debt is sustainable, and the country is not at risk of losing state assets to China, the country's finance minister, Matia Kasaija, said this week. Uganda's auditor-general warned in a report released this month that public debt from June 2017 to 2018 had increased from $9.1 billion to $11.1 billion. The report — without naming China — warned that conditions placed on major loans were a threat to Uganda's sovereign assets.  It said that in some loans, Uganda had agreed to waive sovereignty over properties if it defaults on the debt — a possibility that Kasaija rejected. "China taking over assets? … in Uganda, I have told you, as long as some of us are still in charge, unless there is really a catastrophe, and which I don't see at all, that will make this economy going behind. So, ... I'm not worried about China taking assets. They can do it elsewhere, I don't know. But here, I don't think it will come," he said. China is one of Uganda's biggest country-lenders, with about $3 billion in development projects through state-owned banks. China's Exim Bank has funded about 85 percent of two major Ugandan power projects — Karuma and Isimba dams. It also financed and built Kampala's $476 million Entebbe Express Highway to the airport, which cuts driving time by more than half. China's National Offshore Oil Corporation, France's Total, and Britain's Tullow Oil co-own Uganda's western oil fields, set to be tapped by 2021. Economist Fred Muhumuza says China's foot in Uganda's oil could be one way it decides to take back what is owed.  "They might determine the price, as part of recovering their loan," he said. "By having a foot in there they will say fine, we are going to pay you for oil. But... If you wish to read this full breaking news headline, plus more articles from around Thailand and Asia like, Uganda Not Worried China Will Seize Assets Over Rising Debt, simply click on 'Read full story' below, but 1st please give us a 'LIKE' or 'SHARE' before you leave. Thank you Uganda Not Worried China Will Seize Assets Over Rising Debt

 

 

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Published By: VOA NEWS - Friday, 11 January

 

 

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