The International Monetary Fund ( IMF) has extended 100 percent debt relief for Uganda amounting approximately 126 million US dollars.

IMF representative in Uganda Peter Allum was quoted by local media on Friday as saying that Uganda qualified for the IMF debt relief because of its overall satisfactory recent macro-economic performance, progress in poverty reduction and improvements in public expenditure management.

The debt relief under the Multilateral Debt Relief Initiative ( MDRI) was approved on Wednesday by the IMF executive board and is effective January 2006.

Allum said international community made these additional resources available to help Uganda make progress towards its Millennium Development Goals (MDGs).

"As part of the initiative, the IMF will provide 100 percent debt relief on all debts incurred by Uganda to the IMF before January 1, 2006," he said.

He said this was the first time such a debt cancellation had been approved by the IMF.

"In particular, Uganda has enjoyed robust economic expansion with low rates of inflation for more than five years, the government has established a sound record of implementing the Poverty Eradication Action Plan (PEAP), and it has improved public expenditure management systems. Performance in these areas provides assurance that resources made available under the MDRI will be used effectively," he added.

A total of 19 countries will benefit from the 100 percent debt relief from the IMF.

Source: Xinhua