In recent hours the Central Bank of Uruguay and the Ministry of Economy and Finance announced a package of measures to ensure liquidity and preserve the chain of payments in the local economy.  Following we note some of the measures already implemented and those planned for implementation: 

  • The Central Bank of Uruguay resolved to authorize Financial Intermediation Institutions, Financial Services Companies, and Credit Administrators with high-level assets to: 
  1. Extend due dates on credits to the Nonfinancial Sector –upon agreement with their clients- for up to 180 days, including payment of both principal and interest.
  2. In the case of term loans to consumers, to move installments falling due in the period from March 1 to August 31, 2020, as of the last installment originally provided, or as of September 1, 2020.

The above authorization is applicable exclusively for:

  1. borrowers whose income is affected by the health emergency declared by the Executive Branch on March 13, 2020;
  2. loans in effect at February 29, 2020, in accordance with the Accounting Framework applicable to the said institutions;
  3. credit transactions executed between March 1, 2020 and the date of the resolution;
  4. transactions whose due dates are between March 1, 2020 and August 31, 2020.

The above extensions must not be taken as a restructuring or renewal of loans, and must likewise not involve a reclassification obligation.

Institutions making use of the authorization must duly identify in their information systems the loans extended, as well as those that have not been extended but are in the process of negotiation, for appropriate supervision. 

  • As announced by the Ministry of Economy and Finance in a press conference a few hours ago, Banco República will provide a flexible line of credit of up to USD 50 million for affected companies. The line of credit may potentially be increased by an additional USD 125 million.
  • Also announced at the press conference was the expansion of the guarantee fund of the National Development Agency (ANDE) to guarantee loans for up to USD 2.5 billion. 

This publication contains information of general interest and does not and should not be construed as a legal opinion or advice on specific matters. If necessary, specific legal advice should be sought on matters of interest to you