The manager of the Economic Advisory Department of the Central Bank of Uruguay, Gerardo Licandro, detailed the measures that are being carried out and why to improve the debt rating.
The manager of Economic Advisory of the Central Bank of Uruguay, Gerardo Licandrodetailed the debt strategy of the neighboring country and revealed that it implies a reduction in the dollarization of public debt.
Licandro highlighted the best rating that the country’s debt has achieved in risk rating agencies and stressed that dollarization went from 100% to 50%. “That is a very important change in the exposure of the debt to the dollar and it makes the stocks more manageable,” said the eastern official in the framework of the 2023 Monetary and Banking Sessions that the Central Bank of the Argentine Republic (BCRA) is holding on July 5.
The Uruguayan also highlighted that the public debt reduced its participation in the GDP, which “is high, but it is a much more mature debt” and remarked that they have done a good job in generating a solid financial system but that the problem is the low participation of credit in GDP
Within this framework, Licandro acknowledged that “Uruguay has to advance in the development of domestic credit” and warned that “the private sector refuses to de-dollarize because it says that to do so, inflation must be lowered, but we have not been able to lower inflation expectations.” .
NEWS IN DEVELOPMENT.-
Source: Ambito
