MercoPress. South Atlantic News Agency

Uruguay announces re-purchase of 500 million USD of sovereign debt

The Central Bank has a strong position in international reserves

The Uruguayan government announced that it authorized the repurchase of 500 million US dollars of sovereign debt with the purpose of optimizing its composition and the maturing timetable.

The news was published in Monday’s edition of the Official Gazette but the decree was signed September 2. The Ministry of Economy will be responsible for organizing the operation and conditions that can include bonds issued by the Uruguayan government either under domestic or foreign law.

The Central Bank will be responsible for making effective the operation

The re-purchase of foreign debt continues with the policy initiated at the end of 2007 when the government also authorized (December 3) a similar operation of 500 million US dollars.

The operation means a reduction in interest payments, boosts international confidence and improves the profile of the sovereign debt, says the decree.

The Central Bank has reserves estimated in 7.5 billion USD and the overall sovereign debt of Uruguay according to the latest release stands above 21 billion US dollars.