Inter-American Development Bank President Enrique V. Iglesias announced today that two loans to Uruguay totaling $500 million will be submitted to the IDB’s Board of Executive Directors for approval in the coming weeks.
The resources from these operations will strengthen support for the financial shield announced Tuesday by authorities of the International Monetary Fund and will focus on expanding credit to the private sector and on protecting social spending in Uruguay.
“The substantial increase in assistance by the IMF announced yesterday is a great gesture of confidence in the Uruguayan economy, and it represents decisive support to the country’s economic leadership in times of financial contagion,” Iglesias said.
“The IDB has a broad program of financial support for Uruguay. In the coming weeks I will submit operations to the Board of Executive Directors that will complement the assistance of the International Monetary Fund. The resources from these operations will strengthen the expansion of credit to the private sector and the preservation of social spending. Both operations will alleviate the economic and social costs of the adjustment underway,” he added.
“I believe that the confidence international financial institutions have placed in the country should help accelerate the recovery from the effects of financial contagion, as well as reactivate the economy,” Iglesias concluded.