China Takes Over Uganda International Airport Over Inability To Pay $207 Million Loan

According to reports, Uganda has lost its international airport and other state assets to China over their failure to pay a $207million loan deal.

The Museveni-led Government signed an agreement with China’s Exim Bank on 7th November 2015 to borrow $207 million at two per cent upon disbursement.

For their failure to pay the amount, China is taking over the Ugandan Entebbe International Airport and other assets of the Ugandan government to repay the loan.

This came despite reports that President Yoweri Museveni had sent a delegation to Beijing to renegotiate the deal but the latest visits and pleas to alter the original terms with Chinese authorities were declined.

The loan had a maturity period of 20 years including a seven-year grace period, but it had now appeared that the transaction signed with the Chinese lenders practically means Uganda “surrendered” its most prominent and only international airport.

Credit: VIM BUZZ