MercoPress. South Atlantic News Agency

Uruguay planning to cancel IMF debt by 2010

Uruguay will have cancelled all IMF debts by March 2010, when the current government's mandate comes to an end announced in Montevideo the country's Finance Minister Danilo Astori.

Although there's no official repayment timetable the objective of the current administration of President Tabare Vazquez is to end his five years rule with no IMF debts pending.

Last July the Uruguayan government advanced the repayment of 900 million US dollars which matured in 2007 and still has pending credits in the range of a billion US dollars.

During a press conference at the end of the fifth review under the three year 1.13 billion US dollars stand by agreement with the IMF, Mr. Astori said that advancing payments to the IMF is a valid instrument "as long as they are convenient for the country" and will continue to be used.

"If the operation is advantageous for Uruguay, we will proceed", adding however that much depended on the evolution of financial markets, interest rates and "the possibility of using certain specific financial instruments".

The July IMF credit cancellation represented savings of 15 million US dollars annually which must be added to another 40 million US dollars from the advanced repayment of loans from the Inter American Development Bank and the World Bank.

Marco Piñón head of the IMF mission visiting Montevideo for the fifth review said the multilateral organization was satisfied with the evolution of the economic program and ratified the targets for 2006 and 2007.

"The qualitative targets of the program have been amply achieved" and the Uruguayan economy is "evolving positively, we are looking ahead to a very bright future", said Piñón.