- The Bank approved a second operation under the deferred drawdown modality aimed at consolidating the country’s economic internationalization process
The Inter-American Development Bank approved a $250 million loan to finance the second phase of Uruguay’s Investment, Trade and Innovation Framework Modernization Program. The overall objective of the program is to modernize the normative-institutional framework of investment, trade and innovation to consolidate the country’s international insertion process.
This is the second operation in a series of policy-based programmatic loans with a deferred drawdown option, which is part of Uruguay's policy of precautionary financing. The first operation, also for $250 million, was approved by the Bank in December 2017.
The program will support efforts to consolidate far-reaching sectoral reforms in order to strengthen the overall framework for policies that encourage investment, trade, and innovations.
Its specific goals are to improve the country’s investment and international trade performance and boost corporate innovation and technological adoption to maximize the local impact of investments.
This program includes a series of operations in support of Uruguay’s regulatory and institutional framework to attract investments while at the same time impacting on a number of crosscutting factors aimed at improving inter-institutional coordination and the adoption of best international practices in the areas of investment, trade and innovation.
The IDB’s $250 million loan is for a 20-year term, with a grace period that will vary depending on the amortization schedule adopted in case the disbursement request is formalized during the drawdown period, and carries a Libor-based interest rate.
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region. The IDB is the leading source of multilateral financing for Latin America and the Caribbean.