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Hilbroy Advisory: U.S. $4.3 Billion Debt Hurdle in Face of 2011/12 Budget
Hilbroy Advisory: U.S. $4.3 Billion Debt Hurdle in Face of 2011/12 Budget
The post-election Budget Frame Work paper expected on Wednesday next week among other economic constraints highlights a distressing financial situation brought about by a rising debt burden.
Montreal,
Quebec,
Canada
(prbd.net)
08/06/2011
Montreal, Quebec, June 7th, 2011– Hilbroy Advisory Inc. (DeutcheBörse: 2H0) Hilbroy Advisory Reports: In the face of the rising cost of living, Uganda's economy is persistently falling into the debt trap. The debts that consist of both domestic and foreign loans have caused financial hardship, joblessness, and a decline in personal earnings. This has as a result pushed debt sustainability indicator into dangerous territories every passing day.
The post-election Budget Frame Work paper expected on Wednesday next week among other economic constraints highlights a distressing financial situation brought about by a rising debt burden.
Currently the debt burden stands at $4.3b up from $1.4 billion in 2006/07 financial year. Since the 2006/07 financial year, public debt has been increasing steadily, growing at an average of 17 per cent per annum and projected to increase by 20 per cent in the medium term.
"Uganda's debt exposure has risen from $4.0 billion as of ending June 2009 to $4.3 billion as of June 2010 out of which $2.4 billion is debt outstanding and disbursed while $1.1 billion is committed but yet to be disbursed," the former Finance Minister Syda Bbumba said. Her views on increased borrowing are contained in the latest 2011/12 Budget Framework Paper to Parliament.
The country's, inflation has steadily increased from 14.1 per cent in April to 16.0 percent according to the May data released recently. At the same time, food inflation has increased from 39.3 per cent to 44.1 percent while energy, fuel and other utilities grew from 8.9 per cent to about 9.1 percent. Price increases among other hiccups however, remain a test to the new Finance Minister, Ms Maria Kiwanuka as she prepares to read her maiden Budget on Wednesday.
Therefore, debts have pushed domestic interest rates to a higher end and the cost of debt servicing is going up by the day, leaving insufficient funds for basic services provision including for education, healthcare, safe drinking water and infrastructural and energy projects.
About Hilbroy Advisory Inc.
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
Our specialists will customize a service package that includes reviewing, identifying and recommending a series of specific action and tasks that help their clients’ management decisions when seeking
• Go Public strategy,
• Debt and or equity financing
• Identify prospective investors
• Hire investor relations firm
• Cross listing decisions
• Planning road-shows and promotional campaigns.
Hilbroy Advisory has established numerous international relationships over the years with Broker Dealers, Hedge Funds, Institutional Investors, High net worth Investors as well as with investor relations firms and consultants. These relationships are made available to all Hilbroy clients and our team will manage the relationships from introduction to post financing activities.
Contact:
Jean François Amyot
HilbroyAdvisory, Inc.
1400 rue Begin
Montreal, QC H4R 1X1
info@hilbroyadvisory.com
www.hilbroyadvisory.com
Tel: 514-334-3131
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates", "believes", "could", "expects", "intends", "may", "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.
About
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
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