IDEAS home Printed from
   My bibliography  Save this paper

Restructuring Uganda's debt : the commercial debt buy - back operation


  • Kapoor, Kapil


Uganda's commercial debt buy-back operation was financed by the International Development Association's Debt Reduction Facility (IDA Facility), with cofinancing from the governments of Germany, the Netherlands, and Switzerland and the European Union. Commercial debt service is a serious burden to many low-income economies. Yet, although the IDA Facility has existed since 1989, only a handful of countries have been able to avail themselves of its resources. That is not altogether surprising: commercial debt buy-backs can be extremely complex, requiring substantial preparation for a well-articulated external debt strategy based on comprehensive data. One objective in describing Uganda's operation is to discuss the requirements of the IDA Facility and to shed light on how Uganda satisfied them and on which areas needed special attention. Uganda's offer to buy back its uninsured commercial debt at a discout of 88 percent of facevalue was extremely successful. Of the total eligible debt of US $188 million, Uganda bought back debt worth US $153 million, reflecting a participation rate by creditors of 80 percent. As a result, most of Uganda's commercial debt has been eliminated. The remaining commercial obligations accrue to creditors that either have work in progress or that hold some form of security or collateral for their claims. Uganda's debt problems are far from resolved. Much of the country's Paris Club debt is ineligible for rescheduling because it was contracted after the cutoff date. Arrears owed to non-OECD bilateral creditors have continued to mount, as these creditors have resisted restructuring Uganda's obligations to them. And servicing that part of multilateral debt that is nonconcessional or less concessional also is a burden. Resolving Uganda's external debt problem will require concerted action on several fronts: 1) continued economic reform; 2) vigorous pursuit of export diversification and growth; and 3) no letup in seeking creative ways to restructure the debt portfolio. Uganda must find grant funding wherever possible, or contract only the most concessional debt.

Suggested Citation

  • Kapoor, Kapil, 1995. "Restructuring Uganda's debt : the commercial debt buy - back operation," Policy Research Working Paper Series 1409, The World Bank.
  • Handle: RePEc:wbk:wbrwps:1409

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Binswanger, Hans P. & Deininger, Klaus & Feder, Gershon, 1995. "Power, distortions, revolt and reform in agricultural land relations," Handbook of Development Economics,in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 42, pages 2659-2772 Elsevier.
    2. Pursell, Garry & Gulati, Ashok, 1993. "Liberalizing Indian agriculture : an agenda for reform," Policy Research Working Paper Series 1172, The World Bank.
    3. Mark W. Rosegrant & Robert E. Evenson, 1993. "Agricultural Productivity Growth in Pakistan and India: A Comparative Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 433-451.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Alvarez-Plata, Patricia & Brück, Tilman, 2008. "External Debt in Post-Conflict Countries," World Development, Elsevier, vol. 36(3), pages 485-504, March.


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1409. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.