The proposal was discussed last week in the framework of meetings between the entity and the International Monetary Fund.
At the opening ceremony of the Sustainability Forum, organized by the bank BBVAthe minister of Economy and Finance (MEF), lily arbelecheassured that our country is probing the possibility of agreeing a loan with the world Bank (BM), whose debt interests are tied to environmental conduct.
The head of the MEF maintained that, despite the explosion of the Covid-19 pandemic that the government suffered two weeks after taking office, the Uruguay he never lost sight of the structural agenda he had planned to achieve a sustainable economy in the long term.
Arbeleche said that the country has already incorporated the environmental, governance and social policy criteria for a sustainable economy “always thinking of Uruguayans”, but also “from the economic point of view, as responsible for economic policy”.
According to the minister, during the past week, in the framework of the spring meetings of the WB and the Monetary Fund International (IMF) in Washington D.C.the multilateral credit organizations showed themselves “fully aligned with the (green) bond that Uruguay issued last year“, since “it is part of this great idea that we cannot separate environmental policy and economic policy”.
It is from these meetings that the government began to come to terms with the idea of aligning the country’s interests with its environmental conduct before international creditors, so that “if a country has better environmental behavior, then that benefits it, that it be rewarded some way,” said the minister.
After the bond, Uruguay seeks to obtain green credits with the multilaterals
“In the case of the bond, that prize and that penalty is the interest rate“For this reason, he commented that” last week he was “actively” talking about this concept of aligning the cost of financing with behavior towards the environment “They are no longer from the bond, but are a loan issued by the WB“.
Although the government is considering this for the Uruguayan model, the hierarch is confident that the proposal is “scalable to the whole world”, and that Uruguay is differentiating itself from the rest by taking “concrete steps on the subject”.
Source: Ambito
