Uruguay – Development Policy Loan (Second Programmatic Reform Implementation Development Policy Program)

WASHINGTON, February 3, 2009 - The following project was approved today by the World Bank’s Board of Executive Directors:

IBRD Loan: US$400 million

TERMS: Maturity = 20.5 years; Grace= 15 years

Project Description: The Second Programmatic Reform Implementation Development Policy Loan (PRIDPL II) for Uruguay will support the government of Uruguay’s implementation of reforms in three key policy areas: (i) tax reform; (ii) the business climate and capital markets; and (iii) the social protection system where the loan builds on the achievements of the Social Program Development Policy Loan (SPDPL). The PRIDPL operations are a cornerstone of the Uruguay CAS. Development policy lending under the CAS is intended to support government policies in public sector management, financial sector reform and social programs reform. The PRIDPL I1 operation is consistent with the three main objectives of the CAS, namely: (i) reduce vulnerability of Uruguay’s economy; (ii) sustain economic growth; and (iii) improve living standards.