China takes over Uganda airport on account of loan default.  

China has allegedly taken over the Ugandan Entebbe International Airport and other assets in the Eastern African country on account of default of loans.

This comes after Ugandan President Yoweri Museveni sent a delegation to Beijing for a renegotiation with the Chinese government.

Earlier the Museveni-led government had signed an agreement with China’s Exim Bank to borrow $207 million to expand Entebbe International Airport.

The loan had a maturity period of 20 years including a seven-year grace period, but it had now appeared that the transaction signed with China’s EXIM meant Uganda “surrendered” its only international airport.

Entebbe International Airport is Uganda’s only international airport and handles over 1.9 million passengers per year.

A number of countries, some in Africa, have had to forfeit national assets for direct control by China after failing to repay commercial loans signed with haste or without proper scrutiny.