Loan finance for stronger PFM systems in Uruguay

21 Mar 14
Uruguay will spend around $26m to set up a programme to modernise its public financial management system in order to enhance government spending and transparency.

By Judith Ugwumadu | 21 March 2014

Uruguay will spend around $26.8m to set up a programme to modernise its public financial management system in order to enhance government spending and transparency.

With the support of the Inter-American Development Bank, a new ‘integrated’ and ‘state-of-the-art’ financial information system will be launched in the Latin American country to deal with public sector inefficiencies in budget management, finances and accounting.

The IDB said: ‘The financing is composed of a $14.5m loan over 25 years with a 5.5-year grace period and an interest rate pegged to the LIBOR (London Interbank Offered Rate). The loan is being matched by a Uruguayan contribution of $12.3m.’

The programme aims to enhance operational effectiveness in the handling of Uruguay’s public spending and produce timely and valuable information that will support the decision-making process within the budgetary cycle.

Uruguay’s Ministry of Economy and Finance will also be strengthened by the programme, the IDB said, as will those government agencies that are directly involved in the budgetary process.

 

Did you enjoy this article?

Related articles

Have your say

Newsletter

CIPFA latest

Most popular

Most commented

Events & webinars