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Report on Public Debt (Domestic and External Loans) Guarantees And THE REPUBLIC OF UGANDA REPORT ON PUBLIC DEBT (DOMESTIC AND EXTERNAL LOANS), GUARANTEES AND OTHER FINANCIAL LIABILITIES AND GRANTS FOR FINANCIAL YEAR 2015/16 Presented to Parliament by Hon. Matia Kasaija Minister for Finance, Planning and Economic Development March 2016 REPORT ON PUBLIC DEBT (DOMESTIC AND EXTERNAL LOANS), GUARANTEES AND OTHER FINANCIAL LIABILITIES AND GRANTS FOR FINANCIAL YEAR 2015/16 i THE REPUBLIC OF UGANDA REPORT ON PUBLIC DEBT (DOMESTIC AND EXTERNAL LOANS), GUARANTEES AND OTHER FINANCIAL LIABILITIES AND GRANTS FOR FINANCIAL YEAR 2015/16 Presented to Parliament by Hon. Matia Kasaija Minister for Finance, Planning and Economic Development March 2016 REPORT ON PUBLIC DEBT (DOMESTIC AND EXTERNAL LOANS), GUARANTEES ii AND OTHER FINANCIAL LIABILITIES AND GRANTS FOR FINANCIAL YEAR 2015/16 REPORT ON PUBLIC DEBT (DOMESTIC AND EXTERNAL LOANS), GUARANTEES AND OTHER FINANCIAL LIABILITIES AND GRANTS FOR FINANCIAL YEAR 2015/16 1 Table of Contents List of Tables ................................................................................................................................ 3 List of Charts ................................................................................................................................ 4 List of Acronyms .......................................................................................................................... 5 EXECUTIVE SUMMARY ............................................................................................................... 6 2.0 BACKGROUND ..................................................................................................................... 7 2.1 External Assistance ................................................................................................................ 7 2.2 Domestic Debt ........................................................................................................................ 8 3.0. GOVERNMENT INDEBTEDNESS ............................................................................................ 9 3.1 External Debt .......................................................................................................................... 9 3.1.1 External Debt by Source ................................................................................................... 10 3.1.2 External Debt Trends. ........................................................................................................ 10 3.1.3 External Debt by Creditor .................................................................................................. 11 3.1.4 External Debt Service ........................................................................................................ 12 3.1.5 Commitment fees paid out ................................................................................................ 14 3.2 Domestic debt ...................................................................................................................... 14 3.2.1 Domestic Debt by type and tenure ................................................................................... 15 3.2.3 Domestic Debt Trends FY 2011/12- FY 2014/15 .............................................................. 16 3.2.3 Domestic Debt Service FY 2014/15 .................................................................................. 17 3.2.4 Market developments ........................................................................................................ 18 3.3 Public Debt Sustainability .................................................................................................... 19 3.3.1 Debt Sustainability Stance as end June 2015. .................................................................. 19 4.0 NEW EXTERNAL FINANCING ................................................................................................21 4.2 New Loans Approved by Parliament in FY 2015/16 ............................................................ 21 4.2.1 New Loan Commitments by Sector .................................................................................. 22 4.2.4 Status of pipeline projects ................................................................................................. 24 4.2.5 The Creditor Terms ........................................................................................................... 25 4.3 Grant Agreements Concluded in FY 2015/16 as at 31st December 2015 ........................... 25 4.3.1 New Grants concluded by Sector in FY 2015/16 as at end December 2015 ................... 26 4.3.3 Trends in the New Grants Concluded ............................................................................... 27 5.0 GOVERNMENT GUARANTEES ...............................................................................................28 6.0 TECHNICAL ASSISTANCE ....................................................................................................31 7.0 PERFORMANCE AND ACHIEVEMENT OF OBJECTIVES OF DEVELOPMENT ASSISTANCE ............3 2 7.1 Financial Performance of Development Assistance ............................................................. 32 REPORT ON PUBLIC DEBT (DOMESTIC AND EXTERNAL LOANS), GUARANTEES 2 AND OTHER FINANCIAL LIABILITIES AND GRANTS FOR FINANCIAL YEAR 2015/16 7.1.1 Budgeted External resources vs Actual Disbursements ................................................... 32 7.2 Grant Disbursements ........................................................................................................... 33 7.2.1 Grant Disbursements by Development Partner ................................................................ 33 7.2.2 Grant Disbursements by Sector ........................................................................................ 34 7.2.3 Grant Disbursements by Trends ....................................................................................... 34 7.3 Loan Disbursements ............................................................................................................ 35 7.3.1 Loan Disbursements by Sectors ....................................................................................... 35 7.3.2 Loan Disbursements by Creditors ..................................................................................... 35 7.3.3 Loan Disbursement Trends by Creditor FY 2009/10- FY 2015/16.................................... 36 7.4 Alignment of Development Assistance to the NDP II ........................................................... 36 8.0 DEVELOPMENT ASSISTANCE MANAGED OUTSIDE GOVERNMENT SYSTEMS ...............................................39 8.1 Off Budget Disbursements by Sector .................................................................................. 39 8.2 Off Budget Disbursement by Development Partner ............................................................. 40 9.0 CONCLUSION .................................................................................................................................................42 ANNEX 1: STOCK OF EXTERNAL DEBT AS OF 31ST DECEMBER 2015 (USD) .......................................... 43 ANNEX 2: LOAN INVENTORY AND UTILISATION .................................................................................... 50 ANNEX 3: MEDIUM TERM EXPENDITURE FISCAL FRAME WORK FY 2015/16 – FY 2020/21 ................... 68 ANNEX 4: PROJECTS MANAGED OUTSIDE GOVERNMENT SYSTEMS FY 2015/16 – FY 2020/21 ............. 73 ANNEX 5: FISCAL LTEF TABLE USED DURING THE OCTOBER 2015 DSA EXERCISE ................................ 80 ANNEX 6: LIST OF PIPELINE PROJECTS USED DURING THE OCTOBER 2015 DSA EXERCISE .................. 81 ANNEX 7: TECHNICAL ASSISTANCE BY BENEFICIARY AND DEVELOPMENT PARTNER ........................... 83 ANNEX 8: CONTINGENT LIABILITIES FROM MAJOR PPPS OVER THE MEDIUM TERM...........................86 REPORT ON PUBLIC DEBT (DOMESTIC AND EXTERNAL LOANS), GUARANTEES AND OTHER FINANCIAL LIABILITIES AND GRANTS FOR FINANCIAL YEAR 2015/16 3 Tables Table 1: Total Public Debt by source category Table 2: External Debt stock by source Table 3: Stock of External Debt by Creditor Table 4: Projected vs Actual Debt service by Creditor Table 5: Stock of Domestic Debt as at 31st December 2015 Table 6: Domestic Debt Stock by tenor Table 7: Overview of Domestic Financing for 2015/16 Table 8: Domestic Debt Issuance by time to maturity Table 9: T-Bond yields at primary auction Table 10: Summary of Fiscal Debt Sustainability Status Table 11: New Loans approved by Parliament during FY 2015/16 Table 12: Status of Pipeline loan Projects Table 13: Creditor Terms. Table 14: New Grants Concluded in FY 2014/15 Table 15: Government Guarantees Table 16: Summary of Sector performance as at December 2015 Table 17: Trends in Grant Performance Table 18: Loan Disbursements by trends by Creditor Table 19: Implementation of the National Flagship Projects in the NDP REPORT ON PUBLIC DEBT (DOMESTIC AND EXTERNAL LOANS), GUARANTEES 4 AND OTHER FINANCIAL LIABILITIES AND GRANTS FOR FINANCIAL YEAR 2015/16 Charts Chart 1: Public Debt Trends FY 2006/07 to FY 2015/16 Chart 2: Annual External Public Debt Trends Chart 3: Proportion of DOD by top five Creditors Chart 4: External Debt Service 2011/12- 2015/16 Chart 5: Commitment fees paid out FY 2007/08 – FY 2015/16 Chart 6: Commitment Fees by Creditor Chart 7: Domestic Debt Stock by year of maturity Chart 8: Domestic Debt Stock by tenor Chart 9: Foreign holdings of domestic debt incl. monetary policy securities Chart 10: Domestic Debt trends Chart 11: Domestic
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