The Uruguayan Judiciary branch warned President Jose Mujica that he is in contempt of justice for ignoring a budget bill that contemplates salary increases for judges and other members of independent government bodies.
Uruguay will continue to consolidate its market friendly policies, pledged incoming Economy minister Mario Bergara, 48. on taking office on Thursday surrounded by President Jose Mujica and Vice president Danilo Astori. He replaced Fernando Lorenzo who was forced to resign following a major scandal involving the failure and shut down of the country's flag air carrier Pluna.
Uruguay's economy minister Fernando Lorenzo resigned on Saturday in the face of questions over the alleged irregular sale of government-owned airplanes following the closure of Pluna, the country's flag carrier, President Jose Mujica announced at a brief press conference, with no questions taken, next to Vice president Danilo Astori.
Uruguay's consumer prices' index increased 0.82% in October, and 8.67% in the last twelve months but 9.09% in the first ten months of the year, according to the latest release from the country's Stats Office, INE.
Uruguay’s inflation in August kept climbing and reached 1.04%, totalling 6.74% in the first eight months of the year and 8.86% in the last twelve months, which is well above the Central bank target of 4% to 6%, according to the latest report from the local Statistics Office, INE.
Uruguay filed a shelf registration with the US Securities and Exchange committee to sell up to 5 billion in US denominated securities. Economy minister Fernando Lorenzo said the filing will allow the government to issue debt when it is convenient for the country and market conditions are favourable.
Uruguay announced on Thursday new measures to discourage short term speculative capital inflows that have appreciated the Peso, eroded the country’s international competitiveness, made imports cheaper than domestic production and threaten an already stubborn inflation.
Relations inside the Uruguayan cabinet remain tense with some ministers in non-talking terms even when President Jose Mujica cancelled the Monday full ministerial turnout for three specific areas, security, social affairs and production meetings, which function every two weeks.
“The Uruguayan government is in deep crisis” admitted President Jose Mujica following an open clash between ministers that called for an urgent meeting of the cabinet and half way had to be adjourned on fears that recriminations could get out of control. A recess was ordered but the squabbling through the press continued and the exposed deep rift remains more than a challenge.
Two contrasting views have surfaced in the Uruguayan government regarding inflation which has been steadily climbing and seems so far immune to monetary tools, but is now the second highest in the region behind Argentina.