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Article: URUGUAY: I.M.F. and U.S. AGREE TO EMERGENCY LOANS.(International Monetary Fund )
- Article from:
- NotiSur - South American Political and Economic Affairs
- Article date:
- August 9, 2002
CopyrightCOPYRIGHT 2002 Latin American Data Base/Latin American Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In a marked reversal of earlier policy statements regarding bailouts, the US Treasury agreed to a US$1.5 billion bridge loan for Uruguay and encouraged additional funding from the International Monetary Fund (IMF) and other lenders.
The move came after increasing turmoil that forced Uruguay's finance minister to resign, the Banco Central de Uruguay (BCU) to declare a "banking holiday" to stop a run on deposits, and protests by angry citizens that included the worst looting in years.
On Aug. 4, the US announced it had approved the emergency loan to Uruguay, which would allow the banks to reopen. The US Treasury is lending US$1.5 billion to Uruguay ...