China’s Most Prominent Airport In Uganda Is Closed Because Of Uganda’s Failure To Repay A Loan

China’s most prominent airport in Uganda is closed because of Uganda’s failure to repay a loan

New Delhi, Nov 27, : , The Ugandan government lost its main airport to China because it failed to repay a loan, African media reported.
Today reported that the government failed to reverse a loan agreement with China, which included repayment conditions for attaching its only airport.

 China’s Most Prominent Airport In Uganda Is Closed Because Of Uganda’-TeluguStop.com

According to the report, Entebbe International Airport was attached along with other assets from Uganda.These assets were agreed to be purchased by Chinese lenders after arbitration of the loan.

According to reports, President Yoweri Mugabe had sent a delegation from Washington to try to renegotiate toxic clauses.

According to the report, the visit was unsuccessful because China authorities refused permission to alter the original terms of the agreement.

The Ugandan government represented by the Finance Ministry and Civil Aviation Authority had signed, on November 17, 2015, an agreement with Export-Import Bank of China, (Exim Bank), to borrow U$207 Million at two per cent upon disbursement.The maturity period was 20 years, with a seven-year grace.

According to the report, Uganda has “surrendered” its most important airport to China by signing a deal with Chinese lenders.

According to the Uganda Civil Aviation Authority (UCAA), certain provisions in the Financing Agreement allow Entebbe International Airport and other assets from Uganda to be taken over by Chinese lenders after arbitration in Beijing.

China rejected Uganda’s pleas to renegotiate toxic clauses in the 2015 loan.This has left President Yoweri Museveni’s administration stranded.

According to the Daily Monitor of Uganda (DMUG), the Ugandan government waived international immunity when it signed agreements to secure loans.Entebbe International Airport was then free to take over the airport without international protection.

Last week, Matia Kasaija, Uganda’s Finance Minister, apologized to Parliament for “mishandling the $207 million loans” by China Exim Bank to expand Entebbe International Airport.

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