June 1 (Reuters) – The International Monetary Fund and Uganda reached a staff-level agreement for a $1 billion program under a three-year extended credit facility, the Fund said on Tuesday.

The African country said last month it had applied for an IMF loan in order to bolster its shaky finances after the COVID-19 pandemic hammered its economy.

Last year, the Fund loaned Uganda over $490 million.

“The IMF-supported program supports the next phase of the COVID-19 response and strengthens the fundamentals of a more inclusive private sector-led growth,” said Amine Mati, head of the IMF team that held virtual missions to Uganda earlier this year.

“Strengthening governance and budget transparency will be key to fostering public sector efficiency while preparing the ground for sound management of oil revenues.”

Uganda imposed one of Africa’s tightest COVID-19 lockdowns, which included a shuttering of all businesses except the most essential.

The staff-level agreement is subject to approval by the Fund’s management. (Reporting by Rodrigo Campos in New York; Editing by Peter Cooney)

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