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Stand-By Credit Arrangments

Uruguay has subject too limited intervention by the IMF (International Monetary Fund). No projects have been enacted in the Latin American state, however, multiple arrangements have been made for the IMF to provide the country with varying amounts of stand-by credit (funds to be used as a last resort in the event of due payment to a third party by Uruguay), the first of which was arranged in 1996. This is in line with the institution's goal of achieving and supporting economic stability.

In general, these stand-by arrangements have each been available for use for terms of 1-2 years, each valued in the range of 150 - 2000 SDR (108 million - 1.5 billion USD). Additionally, the Uruguayan government has utilized 72% of funds made available between 2000 and 2006, the last arrangement expiring in Dec of 2006. As of May 2017, the Uruguayan government owes 380,000 SDR (274,502.88 USD) to the IMF which represents less than one 0.00001% of GDP, standing at 53.44 billion USD as of June 2017.

In concert with these stand-by arrangements, the Uruguayan government has relatively successful in its implementation of a “gradual anti-inflation strategy”, started in the 1990’s. Inflation has slowed to 9% in 2017, versus 140%. However, that is above the government's goal of 6%. IN addition, Uruguay maintains high liquidity of assets. It is speculated, by the IMF, that economic downturn in neighboring Argentina and Brazil, a well as an economic slowdown in China, are contributing factors to Uruguay's slowed economic growth.