US$300 Million in Financing Backs Reforms to Boost Competitiveness, Private Investment, and Employment, While Reinforcing Fiscal Sustainability
Washington, D.C., September 14, 2026 — The World Bank’s Board of Executive Directors approved US$300 million in financing to support reforms undertaken by Uruguay to promote private investment, create more and better jobs, and strengthen fiscal sustainability.
Uruguay has robust institutions and solid macroeconomic stability. The challenge now is to build on that foundation to enter a new phase of growth — one marked by higher productivity, increased investment, and expanded employment opportunities.
The measures supported under this operation aim to improve competitiveness and create better conditions for economic growth. Key actions include the ratification of the trade agreement with the European Union, simplification of customs procedures, expanded access to financing for businesses, and a reorientation of investment incentives toward higher-innovation projects. The operation also seeks to improve formal employment outcomes for youth, women, and vulnerable populations.
In parallel, the reforms strengthen Uruguay’s fiscal framework through new rules governing debt and the fiscal balance, greater autonomy for the Autonomous Fiscal Council, and measures to reinforce the long-term sustainability of the pension system. The reforms also incorporate international standards for the taxation of large multinational enterprises.
The financing additionally includes a Deferred Drawdown Option (DDO), which allows Uruguay to rapidly access liquidity in the event of economic shocks, bolstering the country’s response capacity without disrupting its reform agenda.
The project, “Strengthening Competitiveness, Private Investment, and Employment,” carries a variable spread, has a repayment period of 6.5 years, and includes a 2.5-year grace period.
