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Montevideo, June 25th 2019 - 20:38 UTC

 

 

Financial support for Uruguay.

Monday, November 24th 2003 - 20:00 UTC
Full article

Uruguay received a 200 million US dollars loan from the Interamerican Development Bank, IDB, to help stabilize the banking system, ensure liquidity and the recovery of depositors trust.

The loan is in the framework of the Reforms Program sponsored by IDB, International Monetary Fund and the World Bank, following the serious run suffered by the Uruguayan banking system in 2002, as a consequence of the collapse of the neighbouring Argentina's economy.

Even when Uruguay and its banking system managed to survive, (with four banks failing), the loan is targeted to minimize the consequences of 2002 and impede the repetition of similar situations by stabilizing banks, strengthening regulatory mechanisms and a monitoring of government and private financial institutions following the reforms agreed with the sponsors of the loan.

The 20 years loan will be handed in three allotments, 80, 60 and 60 million US dollars in an 18 months period. Interest rate is based on Libor.

Categories: Mercosur.

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