World Bank postpones Uganda loan over anti-gay law

The World Bank has postponed a loan of £54 million ($90m) to Uganda after the signing of the country’s anti-gay law.

The decision is unusual for the institution, who usually avoid getting involved in political situations. The loan had been intended to go towards Uganda’s health system, The Guardian reports.

World Bank Spokesman David Theis said in an email: “We have postponed the project for further review to ensure that the development objectives would not be adversely affected by the enactment of this new law.”

On Monday, President Yoweri Museveni signed off on new legislation during a live television broadcast, meaning that gay people now face life imprisonment if they repeatedly break the laws around homosexuality.

The move caused countries such as Denmark, the Netherlands and Norway to suspend aid to the country, while the US and Canada will review their relationship with the African nation.

However, the Ugandan government has responded to threats to cut aid by saying that they can develop without assistance from the West.

More from Uganda on attitude.co.uk:

> William Hague “deeply saddened” by Uganda anti-gay bill
> Uganda health minister: ‘Gays can still access healthcare’
> Uganda gay activists: ‘Cutting aid will hurt LGBTI community’