Fiscal and external deficits are still high in Uganda. Nevertheless, external financing from official lenders comes at a low cost. A newly agreed three-year program funded by the IMF is likely to anchor economic and fiscal policy as well as provide affordable external financing. The IMF staff level agreement is still subject to IMF board approval in the coming weeks. We affirmed our 'B/B' ratings on Uganda and maintained the stable outlook. On June 11, 2020, S&P Global Ratings affirmed its 'B/B' foreign and local currency long- and short-term sovereign credit ratings on Uganda. The outlook is stable. The stable outlook balances risks associated with Uganda's high fiscal and external deficits over the next year against our expectation that the
