China rejects allegations it may grab Ugandan airport if country defaults on loan

Ugandan President Yoweri Museveni shakes hands with Chinese President Xi Jinping during a signing ceremony in the Great Hall of the People in Beijing, on March 31, 2015. [Reuters]

China has rejected allegations that it may grab Uganda's sole international airport if the east African country fails to service a $200 million loan for the expansion of the facility.

A parliamentary probe last month concluded that China had imposed onerous conditions on the loan, including potential forfeiture of the airport in case of default, sparking public outrage.