Press Release No. 06/246

Press Release No. 06/246

Today, Finance Minister Astori announced Uruguay's intention to repay early all outstanding obligations to the International Monetary Fund (IMF), amounting to SDR 726.7 million (about US$1.08 billion). Uruguay will also be cancelling the current Stand-By Arrangement.

Mr. Rodrigo de Rato, the Managing Director of the IMF, said, "I welcome Uruguay's decision to repay its outstanding obligations to the Fund. This decision reflects the quick recovery of Uruguay from crisis, supported by the international community and the Fund, and its renewed access to international capital markets. The track record of sound macroeconomic policy management has provided the basis for the consolidation of market confidence, strong economic outcomes, and an improved profile of public debt.

"We look forward to continuing a close and constructive relationship with Uruguay as the authorities continue to pursue their important reform agenda," Mr. de Rato added.

Total drawings by Uruguay under its two Stand-By Arrangements were equivalent to SDR 2.25 billion (about US$3.35 billion). Uruguay made three early repayments between September 2005 and August 2006 amounting to SDR 1.14 billion (US$1.69 billion). Under the original schedule, the final repayment of outstanding loans from the IMF would have taken place in 2010.