IDB Approves $750 Million Loan to Improve Assistance for Vulnerable Households in Uruguay

WASHINGTON – The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved $750 million in financing to expand the coverage of social programs for vulnerable Uruguayan households with children and adolescents and improve their access to benefits.

The project is expected to benefit more than 410,000 children and adolescents up to age 17, aims to increase social program coverage among economically vulnerable children and adolescents from 82.4% to 85.6%, and reduce the time to process a benefit application from 67 to 30 days. The operation will also strengthen economic protection during pregnancy and early childhood. 

“When these types of initiatives are timely and support families at critical junctures in life, their true value becomes evident. This project relies on digital technologies to streamline procedures, reduce wait times, and ensure assistance reaches everyone entitled to it. It focuses on supporting children and adolescents living in vulnerable households, which is both a responsibility of any government working to meet the needs of its citizens and an investment in a more promising future for Uruguay,” said Miguel Porrúa, representative of the IDB Group in Uruguay.

The plan calls for gradually implementing a new financial support scheme for children and adolescents, with benefits scaled by household vulnerability and life stage, plus enhanced incentives for pregnant women and young children. The amounts will be linked to the Basic Food Basket (Canasta Básica Alimentaria) and adjusted periodically to preserve purchasing power.

The plan also includes mechanisms to promptly identify pregnant women eligible for social assistance, which is expected to increase coverage from 86.7% to 95% for at least four months of pregnancy.

The program will also support efforts to simplify and modernize processes for accessing and managing benefits in order to enroll more eligible households. This work includes expanding the Single Service Window (Ventanilla Única) for nationwide coverage.

The operation aligns with the IDB Group’s Country Strategy for Uruguay 2026–2030 and will contribute to the well-being of vulnerable children and youth through cash transfers with better coverage, targeting, and adequacy.

The IDB loan has a 25-year repayment term, a five-year grace period, and a three-year disbursement period.