BEIJING: Uganda has been plunged into an embarrassing situation where it could lose its only international airport for the sin of borrowing from China. Uganda is the poorest country in eastern Africa. The country borrowed Rs 1,500 crore from China’s Exim Public Sector Bank in 2015. 2 percent interest on the loan. Must be repaid in 20 years. The rule is that an additional 7 years will be granted. The Ugandan government has taken out the loan to upgrade Entebbe Airport, the only international airport in Uganda.
But China has laid down a strict rule that some government properties, including the Entebbe airport, will be mortgaged if they fail to repay the loan. The loan agreement also stipulates that the airport must be handed over without any international protection. That is, Uganda cannot seek the help of any international body in this matter. Uganda, which had no other choice but to borrow, negotiated with China to change these strict rules.
His team was also sent to Beijing. But the Chinese authorities did not like anything. The Ugandan team is back in the country with a defeat. Because of this, Uganda is conveniently stuck with China. According to reports, China is at risk of losing its only international airport to China in the uncertain economic environment. The country’s finance minister has also demanded a public apology from parliament for failing to comply with the loan agreement.
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