Uruguay Rejects Volatile Bond Market, Turns to Multilaterals
- Government to receive $1.4 billion in loans, in talks for more
- Finance minister sees GDP falling 3%, deficit above 5% in 2020
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Uruguay’s relationship with regional development banks is paying off as it borrows $1.4 billion from low-cost credit lines to fund its coronavirus response instead of relying on volatile bond markets as regional peers are doing.
Uruguay was able to tap those pre-approved credit lines quickly and on attractive terms since the loans are tied to the Libor rate, which is close to record lows, Finance Minister Azucena Arbeleche said.