New IDB-backed program will strengthen the Ministry of Economy and Finance
The Inter-American Development Bank (IDB) has approved a $3 million loan for Uruguay to finance a program aimed at keeping the government’s borrowing costs at competitive levels.
The program will strengthen the institutional capacity of Uruguay’s Ministry of Economy and Finance (MEF) to adequately manage the central government debt, act quickly to formulate and contract public-private partnerships, and carry out effective supervision of financing from multilateral agencies.
"The program will enhance the government’s economic and financial management efficiency through the consolidation of units critical for carrying out these responsibilities," said Roberto Fernández, IDB project team leader.
The program includes actions to consolidate the MEF’s Debt Management Unit, strengthen the Public-Private Partnership Projects Unit, and strengthen the management of borrowing with multilateral agencies.
Activities include the development of an optimal portfolio model, events for dissemination and promotion, and meetings with investors. In addition, the program will include the design of procedures and quality certification for the Public-Private Partnership Projects Unit and greater coordination between national and multilateral agencies.
The IDB loan is for 25 years, with a 5 ½-year grace period and a variable interest rate. Local counterpart financing totals $300,000.