Uganda is preparing to borrow 110.5 million euros ($117.46 million) from Standard Chartered Bank to fund road construction, the finance ministry said, amid worries the country's ballooning debt is draining the country's reserves.

Junior finance minister Amos Lugoloobi has requested parliamentary approval of the credit line, the ministry said on social media platform X late on Thursday.

The money is to finance construction of a 115 km (71.5 miles) road in northern Uganda to help to boost tourism in the region

"This road has been prioritised for upgrading to promote tourism. It will ease movement of tourists," the ministry said in its post.

This month the central bank said the country's reserves had fallen by 12% between June 2023 and January this year, partly because of external debt payments. At the end of last year total public debt stood at $24.7 billion, 60% of which was external, finance ministry figures show. ($1 = 0.9407 euros) (Reporting by Elias Biryabarema Editing by David Goodman)