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World Bank Puts Brakes On $90M Loan To Uganda Over Anti-Gay Law

World Bank Puts Brakes On $90M Loan To Uganda Over Anti-Gay Law

From Bloomberg Africa

World Bank President Jim Yong Kim delayed a $90 million loan to Uganda because of the East African nation’s crackdown on homosexuality and criticized countries for legalizing discrimination against minority groups.

The loan to strengthen health-care systems in Uganda was postponed after President Yoweri Museveni signed a bill on Feb. 24 imposing harsher penalties against homosexuals. Ugandan government spokesman Ofwono Opondo said the suspension amounted to “blackmail” by the Washington-based bank and the country would find another lender, according to posts on his Twitter account.

“As always, Uganda government will live within national resource means by prioritizing sectors and possible re-allocation,” Opondo wrote.

The law has caused a backlash against Uganda, a $20 billion economy that exports more coffee than any other African nation. Denmark and Norway have pulled or redirected aid while Sweden said it’s reconsidering its program. Virgin Group Ltd.’s Richard Branson called for a business boycott in an interview with CNN.

Written by Ian Katz/Read more atBloomberg Africa