The IMF is an international organization founded in 1944 as part of the Bretton Woods Conference. Its primary purpose is to increase financial stability in member countries, with financial means ranging from loans to credit offers. Uruguay is a country in South America. It is a member of the IMF. The economy of Uruguay is diverse, with 7.5% of Gross domestic product (GDP) originating from agriculture, 10% from tourism and 20.6% from industry. As of 2017, Uruguay had the ninth largest GDP in South America and the 96th globally.[1]
Assistanceedit
Uruguay is a beneficiary of IMF intervention, although it has not undergone any of the substantial macroeconomic changes mandated by the IMF and no projects have been completed there. However, multiple arrangements have been made for the IMF to provide the country with standby credit (funds to be used as a last resort in the event of due payment to a third party), the first of which was arranged in 1996. This is in line with the institution's goal of achieving and supporting economic stability. These standby credit lines started during a time of significant economic growth (5% year-over-year), but also at a time of heavy dollarization (alignment with/dependency on the U.S. Dollar). For context, as of 2008, 60% of Uruguay's bank loans use U.S. Dollars as opposed to the national currency, the Uruguayan peso.[2]
In general, these stand-by arrangements have been available for terms of one to two years, each valued in the range of 150 - 2000 SDR (108 million - US$1.5 billion). Additionally, the Uruguayan government has utilized 72% of funds made available to them between 2000 and 2006, the last arrangement expiring in December 2006. As of May 2017, the Uruguayan government owes 380,000 SDR (US$274,502.88) to the IMF, which represents less than 0.00001% of the GDP, standing at US$53.44 billion as of June 2017.[3]
Usage and effectsedit
In concert with these stand-by arrangements, the Uruguayan government has been relatively successful in its implementation of a “gradual anti-inflation strategy” started in the 1990s.[4]Inflation has slowed to 9% in 2017, versus a peak of 140%. However, it is greater than the government's goal of 6%.[5] In addition, Uruguay maintains a high degree of liquidity (the ability to turn its assets into cash). The IMF speculated that an economic downturn in neighbouring countries Argentina and Brazil, as well as a slowdown in China, are contributing factors to Uruguay's slowed economic growth. Despite this, Uruguay's heavy utilization of IMF[6] credit has been heavily correlated with its lasting stability in the South American region.[7] Additionally, Uruguay has been able to keep pace with, or in some cases outperform, the GDP growth rate of neighbouring countries: Brazil and Argentina.
Referencesedit
^"World Economic Outlook, April 2017: Gaining Momentum?". IMF. Retrieved 2017-09-22.
^Savastano, Miguel A. "Dollarization in Latin America : Recent Evidence and Some Policy Issues". IMF. Retrieved 2017-09-22.
^"Press Release: IMF Executive Board Concludes 2015 Article IV Consultation with Uruguay". IMF. Retrieved 2017-09-22.
^"Evolving Monetary Policy Frameworks in Low-Income and Other Developing Countries — Background Paper — Country Experiences". IMF. Retrieved 2017-09-22.
^"IMF -- International Monetary Fund Home Page". www.imf.org. Retrieved 2017-11-17.
^"IMF Survey: Uruguay: Staying the Course in a Volatile Region". IMF. Retrieved 2017-09-22.
External linksedit
IMF chief Christine Lagarde warns of 'dark future' over climate change
January 01, 1970
uruguay, international, monetary, fund, this, article, multiple, issues, please, help, improve, discuss, these, issues, talk, page, learn, when, remove, these, template, messages, this, article, relies, excessively, references, primary, sources, please, improv. This article has multiple issues Please help improve it or discuss these issues on the talk page Learn how and when to remove these template messages This article relies excessively on references to primary sources Please improve this article by adding secondary or tertiary sources Find sources Uruguay and the International Monetary Fund news newspapers books scholar JSTOR June 2017 Learn how and when to remove this message This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Uruguay and the International Monetary Fund news newspapers books scholar JSTOR June 2017 Learn how and when to remove this message The examples and perspective in this article may not include all significant viewpoints Please improve the article or discuss the issue June 2017 Learn how and when to remove this message Learn how and when to remove this message The relationship between Uruguay and the International Monetary Fund IMF began when Uruguay joined the IMF Contents 1 International Monetary Fund 2 Assistance 3 Usage and effects 4 References 5 External linksInternational Monetary Fund editThe IMF is an international organization founded in 1944 as part of the Bretton Woods Conference Its primary purpose is to increase financial stability in member countries with financial means ranging from loans to credit offers Uruguay is a country in South America It is a member of the IMF The economy of Uruguay is diverse with 7 5 of Gross domestic product GDP originating from agriculture 10 from tourism and 20 6 from industry As of 2017 Uruguay had the ninth largest GDP in South America and the 96th globally 1 Assistance editUruguay is a beneficiary of IMF intervention although it has not undergone any of the substantial macroeconomic changes mandated by the IMF and no projects have been completed there However multiple arrangements have been made for the IMF to provide the country with standby credit funds to be used as a last resort in the event of due payment to a third party the first of which was arranged in 1996 This is in line with the institution s goal of achieving and supporting economic stability These standby credit lines started during a time of significant economic growth 5 year over year but also at a time of heavy dollarization alignment with dependency on the U S Dollar For context as of 2008 60 of Uruguay s bank loans use U S Dollars as opposed to the national currency the Uruguayan peso 2 In general these stand by arrangements have been available for terms of one to two years each valued in the range of 150 2000 SDR 108 million US 1 5 billion Additionally the Uruguayan government has utilized 72 of funds made available to them between 2000 and 2006 the last arrangement expiring in December 2006 As of May 2017 the Uruguayan government owes 380 000 SDR US 274 502 88 to the IMF which represents less than 0 00001 of the GDP standing at US 53 44 billion as of June 2017 3 Usage and effects editIn concert with these stand by arrangements the Uruguayan government has been relatively successful in its implementation of a gradual anti inflation strategy started in the 1990s 4 Inflation has slowed to 9 in 2017 versus a peak of 140 However it is greater than the government s goal of 6 5 In addition Uruguay maintains a high degree of liquidity the ability to turn its assets into cash The IMF speculated that an economic downturn in neighbouring countries Argentina and Brazil as well as a slowdown in China are contributing factors to Uruguay s slowed economic growth Despite this Uruguay s heavy utilization of IMF 6 credit has been heavily correlated with its lasting stability in the South American region 7 Additionally Uruguay has been able to keep pace with or in some cases outperform the GDP growth rate of neighbouring countries Brazil and Argentina References edit World Economic Outlook April 2017 Gaining Momentum IMF Retrieved 2017 09 22 Savastano Miguel A Dollarization in Latin America Recent Evidence and Some Policy Issues IMF Retrieved 2017 09 22 Press Release IMF Executive Board Concludes 2015 Article IV Consultation with Uruguay IMF Retrieved 2017 09 22 Evolving Monetary Policy Frameworks in Low Income and Other Developing Countries Background Paper Country Experiences IMF Retrieved 2017 09 22 International Monetary Fund Western Hemisphere Dept Uruguay Selected Issues IMF Retrieved 2017 09 22 IMF International Monetary Fund Home Page www imf org Retrieved 2017 11 17 IMF Survey Uruguay Staying the Course in a Volatile Region IMF Retrieved 2017 09 22 External links editIMF chief Christine Lagarde warns of dark future over climate change Retrieved from https en wikipedia org w index php title Uruguay and the International Monetary Fund amp oldid 1168604759, wikipedia, wiki, book, books, library,
