IDB approved financing for a program to be implemented in state agencies and in different units of the Ministry of Economy and Finance
The Inter-American Development Bank (IDB) approved a loan of $17 million in support of a program that will contribute to increase the efficiency and effectiveness of budgetary and financial management of the public sector in Uruguay, through a greater generation and use of information for the management of resources in state agencies and the modernization of public financial management procedures and tools in different units of the Ministry of Economy and Finance.
Among the actions planned in the budgetary area include expanding the implementation of integrated resource management systems; developing and implementing specific information management systems to improve areas of management, standardize and update integrated management systems, implement process improvement plans, and train management personnel in the use of information for decision making.
In terms of financial management, the objective of the program is to contribute to greater efficiency in the management of resources through the improvement of technical and human capacities, and of work processes and computer systems that intervene in the financing mechanisms not tributary, as in the application of resources, including, among others, payment, accounting and auditing processes.
The main expected results are an increase in the efficiency of the allocation and use of budgetary resources and an improvement in the efficiency in the management of financial resources.
The IDB loan of $17 million has a repayment term of 25 years with a 5-year and a half grace period, an interest rate based on LIBOR and a local counterpart of $3 million.
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.