The Ugandan government is on the verge of losing its only international airport to the Chinese for failing to repay loans.
According to the reports, the government of Uganda has failed to meet up with a loan agreement with the Chinese, the loan which only had repayment conditions of attaching the Uganda's only international airport and other assets.
The reports have it that Entebbe International Airport and other Ugandan assets were invoved and it was agreed that the assets are to be taken over by the Chinese lenders if the country defaults in paying back the loan.
It was also gathered that President Yoweri Museveni had sent a team to Beijing for a renegotiation of the loan terms but the meeting with the lenders was confirmed unsuccessful as China authorities did not give room for any alteration in the original terms of the deal.
According to the Uganda Civil Aviation Authority (UCAA) "some provisions in the Financing Agreement expose Entebbe International Airport and other Ugandan assets to be attached and taken over by Chinese lenders upon arbitration in Beijing."
The deal signed with the Chinese lenders virtually means Uganda had surrendered its most prominent airport to China and China has rejected pleas by Uganda to renegotiate the toxic clauses of the 2015 loan which has left Ugandan government in an uncertain condition.
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