MercoPress. South Atlantic News Agency

Uruguay paid US$64 million after Luxembourg account seizure not disclosed by previous government

The Panamanian company Larah, a former shareholder of Pluna, had demanded payment of more than US$56 million after the ICSID ruled in its favor in February 2024

The Uruguayan state had its bank accounts in Luxembourg frozen for several months due to non-payment of an arbitration award over the closure of national airline Pluna. The situation, which affected 37 financial institutions, was uncovered by El País after accessing official documents through a freedom of information request.

The Panamanian company Larah, a former shareholder of Pluna, had demanded payment of more than US$56 million after the ICSID ruled in its favor in February 2024. Following Uruguay’s failure to comply, assets were frozen in Luxembourg on 22 November that year. The measure remained in place until 27 August 2025, when President Yamandú Orsi’s government confirmed the payment of US$64.3 million.

According to El País, details of the frozen accounts were not disclosed to the incoming administration during the government transition. Deputy Secretary of the Presidency Jorge Díaz said, “This information was hidden from us, which is extremely serious and put the country at risk.”

The frozen assets included funds Uruguay uses to meet international obligations such as bonds and treasury bills. El País also reported that negotiations launched by the previous administration of Luis Lacalle Pou collapsed after Larah demanded the closure of civil and criminal proceedings against former Pluna executives.

The embargo was lifted after payment was made on 30 May 2025. Díaz stressed the importance of Uruguay’s international standing: “The Uruguayan state represents seriousness, good reputation, and certainty in fulfilling commitments. Having our accounts abroad frozen is far from a path of seriousness.”