US$400 million approved for Uruguay

(Caracas, July 10, 2008).- The Andean Development Corporation approved for the Republic of Uruguay a US$400-million contingent line of credit in favor of the Ministry of Economy and Finance. The instrument will back execution of the Uruguayan government’s public debt management strategy.

CAF President & CEO Enrique García said that "the Uruguayan economy is in its sixth year of sustained growth thanks to the favorable external context and prudent conduct of macroeconomic policy. With this approval we are supporting the public debt management strategy implemented by the Ministry of Economy and Finance through its Debt Management Unit by means of a preventative financial instrument which provides funds for the country on a needs basis and on conditions consistent with that strategy," he added.

García said that the Corporation's support for the country - through this credit facility and considering the situation on international financial markets - contributed to limiting uncertainty about the continuity of the rationalization policy and the strategy of improving the public debt profile, in case of disruption on the international capital market. "A preventative instrument such as this reflects the backing of the international financial community and transmits confidence in the country’s present and future, at the same time as supporting the objectives of the economic authorities in relation to improving risk perception and regaining investment grade," García said.