Home loans and consumer loans must also be classified and reserved in accordance with the prior classification taking their specific characteristics into consideration.
Banco Central substantially adheres to the requirements of the Basle Committee on Capital Adequacy of the Bank of International Settlement and, as a general rule, since September 1998 has required ratios of total capital to risk-weighted assets equivalent to 8% in the case of banks, financial cooperatives, financial houses and off-shore banks, and 12% in case of financial cooperatives holding a limited license. Minimum capital requirements must cover credit risk requirements and market risk requirements under the Basle I Capital Amendment.
In order to mitigate the exposure of Uruguayan banks to the foreign exchange risk created by the denomination of a significant portion of their loan portfolio in U.S. dollars, – impact on the creditworthiness of borrowers that could arise from volatility in foreign exchange rates – loans denominated in foreign currency are given a weight of 125% instead of the normal 100% applied to loans denominated in pesos and significant shifts in the dollar/peso exchange rate should be taken into consideration by the banks in assessing the borrowers’ ability to repay their obligations (and in order to classify the foreign currency-denominated loans in accordance with the categories described above).
As of December 31, 2007, financial institutions had on average a total capital to risk-weighted assets ratio above the 8% required by Banco Central. Private banks and cooperatives averaged a total capital to risk-weighted assets ratio of approximately 14%, while Banco de la República had a ratio of almost 27%. All financial institutions met their capital to risk-weighted asset ratios throughout 2006, except for Banco Hipotecario.
Since early 2003, Banco Hipotecario has undergone a process intended to restructure its operations and redefine its sources of funding. Banco Hipotecario will refrain from taking deposits other than pre-saving deposits denominated in local currency with respect to amounts intended to be applied together with the proceeds of a mortgage loan to purchase or build a property. Until the restructuring process is completed, Banco Hipotecario can neither extend new loans, nor take deposits from the general public.
Due to difficulties in achieving a capital to risk-weighted asset ratio in compliance with the capital adequacy regulations, and as a consequence of a significant run by depositors in January 2006, Banco Central suspended the activities of Uruguay’s largest credit cooperative, focused on retail banking and small businesses, or COFAC, as of February 1, 2006. Depositors were given access to the deposit insurance scheme administered by the Superintendency for the Protection of Bank Savings (SPAB) in March 2006. Banco Bandes Uruguay S.A. a subsidiary of Venezuela’s development bank incorporated as a bank in Uruguay, acquired the assets and remaining deposits of COFAC after its business plan and operations were approved by the Superintendency of Financial Institutions. The plan contemplated a possible need for further capitalization of the new institution, which occurred in January 2007, after the capital adequacy ratio fell below 8.0% in December 2006. As of December 2007, Banco Bandes Uruguay S.A. shows a capital to risk weighted assets ratio of approximately 14%.
Commercial banks in Uruguay typically provide full-service banking. Of the 14 private banks operating in Uruguay as of December 31, 2007, nine are Uruguayan corporations (eight of them owned by foreign banks) and five are branches of foreign banks. In accordance with current legislation, the Republic guarantees the deposits of Banco de la República, Banco Hipotecario and of Banco Central, and the performance and payment obligations of Banco de Seguros del Estado. The operations of Banco Hipotecario are being restructured and consequently the services the bank is authorized to provide in respect of extending credit and taking deposits have been limited.
Nuevo Banco Comercial, which was created by the government with the purpose of acquiring the recoverable assets of three banks that were liquidated in December 2002, is subject to the laws and regulations applicable to private financial institutions, and its deposits are not guaranteed by the Republic. In June 2006, 100% of its common shares (representing 60% of Nuevo Banco Comercial’s equity) were acquired by a group of international investors led by Advent, an investment fund manager.
Under Uruguayan banking legislation, banks organized in Uruguay are considered national banks even if their capital is held by a foreign bank. Foreign banks may set up branches in Uruguay that enjoy the same operating privileges as banks incorporated in Uruguay. Financial houses, the majority of which are owned by foreign banks, may conduct any type of financial operations except those reserved exclusively to banks, such as accepting demand deposits both from Uruguayan residents and from nonresidents and time deposits from Uruguayan residents. Financial cooperatives are financial institutions organized as cooperatives, which can only provide banking services to their members. There are two kind of licenses granted to financial cooperatives – the first limiting its financial operations to operating predominantly in pesos and imposing a fixed ceiling on the amount of individual loans, and the second having a broader scope and allowing cooperatives to perform the same operations as banks, and as a result of that making them subject to the same regulatory requirements. Following the suspension of COFAC’s operations, there are no cooperatives holding broad banking licenses in Uruguay.
Banco de la República serves as the government’s commercial bank and also operates as a commercial and development bank for industrial and farming activities. As of December 31, 2007, Banco de la República held approximately 45% of deposits of the private non-financial sector with the financial system (excluding off-shore banks and financial houses). Following the financial crisis of the early 1980s, Banco de la República enhanced its position as the predominant provider of long-term financing and of promotional medium-term loans for industrial and farming activities, as many private banks geared their business toward short-term loans. Certain private banks have extended medium-term loans to corporations and individuals, primarily to purchase goods, and long-term mortgage loans in connection with the purchase of real estate.
The 2002 Banking Crisis
Volatility in Argentina at the end of 2001 initially caused an increase in deposits by nonresidents with the Uruguayan banking system. As of December 31, 2001, U.S. dollar deposits in the financial system totaled US$14.2 billion compared to US$12.4 billion as of December 31, 2000. However, Uruguay’s two largest private banks, Banco Comercial and BGU, were affiliated with Argentine banks and experienced an increase in deposit withdrawals in December 2001 and January 2002. Between December 2001 and January 2002, depositors withdrew a total of US$564 million from BGU and Banco Comercial.
As of December 31, 2001, BGU was the second largest private bank in Uruguay, with assets of approximately US$1.7 billion and deposits of approximately US$1.3 billion. BGU is a subsidiary of Banco de Galicia y Buenos Aires S.A. Its core business consisted of taking deposits from, and making loans to, Argentine persons and companies. The adoption of foreign exchange controls by the Argentine authorities in December 2001 severely limited BGU’s access to liquidity. BGU depleted its liquid assets in January 2002 and did not qualify to receive liquidity assistance from Banco Central. Banco Central took control of BGU on February 13, 2002 and instituted a suspension of its operations. In May 2004, Banco Central revoked BGU’s banking license.
Banco Comercial was the largest private bank in Uruguay with US$2.0 billion in assets and US$1.3 billion in deposits as of December 31, 2001. Banco Comercial was the Uruguayan private bank with the largest branch network in the country. It provided payment services to numerous Uruguayan entities. Out of total deposits held with Banco Comercial as of December 31, 2001, approximately 25.0% were placed by non-residents. Banco Comercial was also affected by the Argentine crisis and, to an even greater extent, by the implication of a former board member and shareholder in alleged fraudulent activities involving the bank and its Argentine affiliate, Banco General de Negocios, as well as Compañía General de Negocios, a Uruguayan affiliate. On February 28, 2002, Uruguay and Banco Comercial’s three other shareholders (JP Morgan Chase, Credit Suisse First Boston and Dresdner Bank) each contributed US$33 million to the bank in exchange for 25.0% of the bank’s equity and replaced management. Banco Comercial also received US$10 million (net of repayments) in emergency liquidity lines from Banco Central and direct financial support from the Uruguayan government for an additional US$277 million. The capital contributions, together with the financial assistance, allowed Banco Comercial to continue operating during the first seven months of 2002. Banco Comercial lost approximately US$787 million (56.0% of its total deposits held for the non-financial sector) in U.S. dollar-denominated deposits between January 1, 2002 and July 30, 2002, when Banco Central declared a bank holiday and instituted a suspension of Banco Comercial’s operations. See The Banking Sector—Banco Comercial Shareholder Dispute.”
D-48
The deposit outflow spread through the rest of the financial system in the second quarter of 2002 as the contagion effects of Argentina became clearer. On June 21, 2002, Banco Central took control of Banco Montevideo/La Caja Obrera, Uruguay’s third largest private bank, and removed its management.
Although the government received approximately US$500 million from the IMF on June 29, 2002, and provided liquidity assistance to the local banks, confidence in the Uruguayan financial system continued to erode. Between June 1 and July 30, 2002, total deposits in the financial system decreased by US$2,206 million. On July 30, 2002, after a sharp decrease in Banco Central’s international reserve assets to approximately US$650 million, the government declared a bank holiday (which ultimately continued for four business days).
The Uruguayan authorities sought the financial assistance of the IMF, the World Bank and the IADB for a program that would safeguard Uruguay’s payment and financial system without unnecessarily channeling additional resources to support financial institutions that had become insolvent. The cornerstone of Uruguay’s program consisted of providing the liquidity needed by the two state-owned banks (Banco de la República and Banco Hipotecario) and the three banks under the control of Banco Central at the time (Banco Comercial, Banco Montevideo/La Caja Obrera and Banco de Crédito) to honor sight deposits existing as of July 30, 2002. The IMF program also contemplated a mandatory rescheduling of U.S. dollar-denominated time deposits held with Banco de la República and Banco Hipotecario and the suspension of the activities of Banco Comercial, Banco Montevideo/La Caja Obrera and Banco de Crédito.
On August 4, 2002, Congress passed Law 17,523, known as the Law for the Strengthening of the Financial System. The law (i) provided for the establishment of a fund for the stability of the Uruguayan banking system, the FESB, (ii) extended the maturities of all U.S. dollar-denominated time deposits held with Banco de la República and Banco Hipotecario to three years, (iii) transferred foreign currency-denominated liabilities of Banco Hipotecario to Banco de la República, and (iv) facilitated the liquidation of insolvent banks.
On August 4, 2002, Uruguay gained access to US$1,372 million of additional assistance from the IMF, the World Bank and the IADB. The proceeds of this financing were contributed by the government to the FESB, thereby providing the liquidity needed by Banco de la República, Banco Hipotecario, Banco Comercial, Banco Montevideo/La Caja Obrera and Banco de Crédito to honor sight deposits existing as of July 30, 2002 and thereby prevent a meltdown of Uruguay’s payment system.
On December 27, 2002, Congress enacted an amendment to the banking law (Law 17,613) aimed at strengthening the banking system. The law imposed reporting obligations on bank employees that acquire knowledge of irregularities, authorized the Superintendency of Financial Institutions to impose fines on the state-owned banks, and created a public register for bank shareholders. The law also provided the basis for the liquidation of the four private banks whose operations were discontinued in connection with the bank holiday declared on July 30, 2002 and the creation of a new financial institution with the portfolio of recoverable assets previously owned by the liquidated banks, expanded the powers of Banco Central in connection with the liquidation of financial institutions and the application of prudential regulations to state-owned banks, and mandated a deposit insurance program (which was implemented in March 2005). Following the adoption of the law, the government completed the reorganization of the discontinued banks into a new commercial bank, Nuevo Banco Comercial. Nuevo Banco Comercial, which was set up as a private bank, although its capital was initially owned by the government, acquired the recoverable assets of three of the liquidated banks (Banco Comercial, Banco Montevideo and La Caja Obrera), assumed certain deposits and commenced its operations in March 2003. The non-recoverable assets of the three liquidated banks are held by liquidation funds, which were initially managed by Banco Central and were subsequently transferred to a private asset management company following a public bidding process. Deposits of the liquidated banks that were not assumed by Nuevo Banco Comercial entitle depositors to a pro rata share of the assets held by the corresponding liquidation fund.
D-49
During the 2002 crisis, with the exception of BGU and Banco Comercial, foreign-owned banks in Uruguay funded deposit outflows from their own resources.
The share of non-performing loans (NPLs) on total loans issued to the non-financial sector increased during the 2002 crisis. For all active private institutions excluding offshore banks, NPLs increased from 5.0% to 16.0% on a net basis (from 10.0% to 25.0% on a gross basis) from December 2001 to December 2002. The deterioration of the loan portfolio can be attributed to the deepening of the recession and the devaluation of the peso. Devaluation affected the ability of local borrowers that did not have access to foreign exchange revenues to pay back their debts, which were mostly denominated in dollars. The increase of non-performing loans also, however, reflected the effect of the dramatic reduction of the stock of credit, from US$3.2 billion in December 2001 to US$2.0 billion in December 2002. In order to fund the deposit outflow, most banks ceased extending loans, thereby contributing to the increase in the share of NPLs.
Banco Central took measures to improve the soundness of the banking system, raising the minimum capital required to hold a license to operate as a financial intermediary institution (“responsabilidad patrimonial básica”) and also issuing instructions to banks requiring that the value of any collateral be reappraised after July 30, 2002 so as to factor into such valuation the impact of the devaluation of the peso.
Uruguay’s Banking System Following the 2002 Crisis
During 2003 Uruguay’s banking system gradually recovered stability. While a gradual recovery of deposits by the banking system noted during the last quarter of 2002 was suddenly reversed with the withdrawal of approximately US$353 million of deposits between January 30 and February 7, 2003, beginning in March 2003, the level of deposits by the non-financial private sector started to increase. By December 2003 such deposits had reached US$7.6 billion (excluding deposits held with off-shore banks and financial houses). The successful reprofiling of the government’s foreign currency-denominated debt in June 2003 assisted in reducing the uncertainties and volatility that had affected Uruguay’s banking system since the end of 2001.
On February 28, 2003, Banco Central decided to liquidate Banco de Crédito, whose operations were suspended in August 2002. The decision was adopted after attempts to reach an agreement to transfer control to the minority shareholder failed. Banco Central had conditioned the transfer of control on a significant capital contribution and a strict business plan.
The government also implemented certain structural reforms affecting state-owned banks. Following the transfer of all deposits to Banco de la República during the last quarter of 2002, the government streamlined the operations of Banco Hipotecario and limited its license to receive deposits. In December 2003, Banco de la República transferred a portion of its loan portfolio, comprised mainly of past due loans, to a financial trust. A special vehicle was established to administer the transferred loans under the terms of the arrangements setting up the financial trust, Banco de la República was entitled to receive proceeds arising from recoveries under the transferred the loans in accordance with a pre-set cash flow schedule. The government guaranteed the recovery rate contemplated in the trust agreement and agreed to cover any deficit if the recovery rate were not realized. This transfer improved Banco de la República’s percentage of NPLs to 0.7% in December 2007. The guarantee was never executed and it was released in December 2006 as the bank achieved better than expected cash flows from the recoveries.
At December 31, 2004, the non-financial private sector’s deposits held with the banking system (excluding deposits held with off shore banks and financial houses), of which 89.5% were denominated in foreign currencies, stood at US$8.2 billion. Approximately 54.3% of those deposits were held with Banco de la República, Banco Hipotecario and Nuevo Banco Comercial. The improved liquidity of the financial institutions also extended to Banco de la República, which was able to commence the repayment of the deposits whose maturity had been extended in August 2002 on an accelerated basis.
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As inflation rates dropped and the peso appreciated, interest rates declined, but this did not result in an immediate expansion of bank credit. See “Monetary Policy and Inflation.”
The weighted average interest rate for term deposits denominated in U.S. dollars has increased in the last two years from about 1.3% in 2005 to 2.5% in 2007. Sight deposits, which accounted on average for 70% of total deposits, paid minimal interest in case of current accounts denominated in U.S. dollars and rates below 0.5% for savings accounts denominated in U.S. dollars. During the same period, real interest rates for deposits denominated in pesos (nominal rate minus inflation) remained negative.
Deposits during 2005 were largely denominated in foreign currencies, primarily U.S. dollars. In March 2005, the government established a deposit insurance regime to protect holders of U.S. dollar-denominated deposits of up to US$5,000 and peso-denominated deposits of up to the current equivalent of US$15,000 coverage in the event of a liquidation of the bank where such deposits are held. The government provided initial support for this regime through a US$60 million loan, which is expected to be replaced over time by insurance premiums required to be paid by the financial institutions on account of deposits taken.
In the first quarter of 2005 Banco de la República completed the repayment of time deposits whose maturity was extended in August 2002 as part of the solution of the banking crisis. Since 2004, when Banco de la República commenced the repayment of these deposits, amounts exceeding 90.0% of the deposits repaid have been voluntarily deposited with Banco de la República. During 2005, the financial trust created in 2003 to manage the majority of past due loans of the bank has honored the pre-set payments and the government guarantee did not need to be called upon.
During 2005, the non-financial private sector’s deposits with the banking system and solvency ratios increased and the share of NPLs on total loans, decreased. Deposits (including deposits in off-shore banks) increased by US$222 million in 2005, to a total of US$9,377 million as of December 31, 2005. Despite the increase in deposits, credit extended to the non-financial sector remained relatively stable during 2005. Solvency ratios of the banking system on average remained above the 10.0% total capital to risk-weighted asset ratio required by Banco Central and 6.4% above the level at December 31, 2004. At December 31, 2005, the regulatory capital of private banks (including Nuevo Banco Comercial) was 2.2 times above the minimum regulatory requirement, while capital of the Banco de la República was at 2.1 times the minimum requirement. Finally, the share of NPLs on total loans (based on payment delinquencies) of private banks (including Nuevo Banco Comercial) decreased from 7.6% in December 2004 to 3.6% in December 2005, while it remained within a range of 7.0% and 8.0% in 2005 for Banco de la República.
In March 2005, the operations of COFAC were suspended by Banco Central when it became apparent that its capitalization was insufficient to support its continued operations. After a US$39 million increase in COFAC’s equity (resulting primarily from the capitalization of certain creditors’ deposits), the rescheduling of a portion of the time deposits held at COFAC, the amendment of their corporate governance rules and the approval of a plan to reduce costs by 30%, the Uruguayan bank supervisory authority allowed COFAC to resume its operations. On February 1, 2006, Banco Central suspended COFAC’S activities for a second time following a run on its deposits that resulted from a loss of confidence of its clients. COFAC also failed to meet the conditions imposed by Uruguayan bank regulators in March 2005, which included maintaining its net worth over the minimum capital requirements established by prudential regulation and reducing its operational deficit when COFAC confronted a liquidity crisis. On March 9, 2006, for the first time since it was established in 2005, the SPAB began honoring insurance claims for deposits made with COFAC covering substantially all eligible deposits within a period of two months for an amount totaling nearly US$50 million. After the analysis of a business plan submitted by the Venezuelan government-owned development bank – BANDES – in connection with an application made for a license to operate as a bank in Uruguay, the authorized new institution, Bandes Uruguay S.A., purchased most of COFAC’s assets and remaining deposits. Bandes Venezuela discharged all amounts COFAC owed the SPAB.
During 2006, the non-financial private sector deposits with the banking system increased, solvency ratios increased and the share NPLs on total loans, decreased. Deposits (including deposits in off-shore banks) increased by US$845 million to a total of US$10,222 million as of December 31, 2006. Credit extended to the non-financial sector recovered substantially in 2006, increasing by US$545 million to a total of US$4,606 million. Solvency ratios of the banking system on average remained over the 8% total capital to risk weighted assets ratio and at a level similar to that of December 2005. At December 31, 2006, the regulatory capital of the banking system (excluding Banco Hipotecario) was 2.1 times above the minimum regulatory requirement. Finally, the share of NPLs on total loans (based on payment delinquencies) of private banks fluctuated between 3.6% and 4.3% in 2006 and decreased from 8.0% in 2005 to 2.9% in 2006 for Banco de la República.
D-51
In 2007, deposits of the non-financial sector in the financial system grew by US$1,290 million, representing a nearly 13% increase over the previous year, up to US$11,510 million (approximately 79% denominated in U.S. dollars). Regulatory capital as of December 31, 2007, represented 18% of risk-weighted assets (excluding Banco Hipotecario del Uruguay). The share of NPLs on total loans (based on payment delinquencies) of private banks declined from 3.6% as of December 31, 2006, to 1.1%. During 2007, bank credit to enterprises and individuals increased to approximately 26% of Uruguay’s GDP.
The authorities continue to monitor the overall condition of the banking sector closely with a view to taking early action on a case-by-case basis and correcting any trend that could adversely affect the banking system as a whole.
The following tables set forth classifications of loan assets of the Uruguayan banking system as of December 31, 2007.
Classification of Aggregate Assets of the Uruguayan Banking System(1)
(as of November 30, 2007 in millions of Uruguayan pesos)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 1A | | 1B | | 1C | | 2A | | 2B | | 3 | | 4 | | 5 | | Total | |
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Banco de la República | | | 56,300 | | | 9 | | | 21,580 | | | 3,558 | | | 3,172 | | | 3,888 | | | 1,615 | | | 1,299 | | | 91,421 | |
Privately owned banks | | | 53,896 | | | 176 | | | 50,390 | | | 9,192 | | | 9,403 | | | 4,246 | | | 4,131 | | | 1,445 | | | 132,879 | |
Financial houses | | | 1,480 | | | 28 | | | 1,010 | | | 131 | | | 293 | | | 121 | | | 93 | | | 6 | | | 3,163 | |
Off-shore banks | | | 3,536 | | | 399 | | | 924 | | | 766 | | | 0 | | | 0 | | | 0 | | | 1 | | | 5,626 | |
Cooperatives | | | 121 | | | 0 | | | 338 | | | 44 | | | 48 | | | 62 | | | 16 | | | 56 | | | 684 | |
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Total | | | 115,333 | | | 611 | | | 74,243 | | | 13,691 | | | 12,916 | | | 8,317 | | | 5,855 | | | 2,806 | | | 233,772 | |
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Percentage | | | 49.3 | | | 0.3 | | | 31.8 | | | 5.9 | | | 5.5 | | | 3.6 | | | 2.5 | | | 1.2 | | | 100.0 | |
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(1) | Classification based on credit risk analysis. Gross credit and contingent risks to the financial and non-financial sector. |
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Source: Banco Central. |
Credit Classification of the Banking System(1)
(Based on payment behavior of clients)
(as of December 31, 2006)
| | | | | | | |
Institution Type | | Performing
Loans | | Non Performing
Loans | |
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| |
Banco de la República | | | | 99.3 | % | | | | 0.7 | % | |
Banco Hipotecario del Uruguay | | | | 36.9 | % | | | | 63.1 | % | |
Private banks | | | | 99.6 | % | | | | 0.4 | % | |
Cooperatives | | | | 95.8 | % | | | | 4.2 | % | |
Financial houses | | | | 100.0 | % | | | | 0.0 | % | |
Off-shore banks | | | | 100.0 | % | | | | 0.0 | % | |
Total | | | | 90.9 | % | | | | 9.1 | % | |
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(1) | Loans to both financial and non-financial sector, net of provisions. |
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Source: Banco Central. |
D-52
Total Provisions of the Banking System For
Gross Non-Performing Loans(1)
(as of December 31, 2007)
| | | | |
Institution Type | | Provisions | |
| |
| |
Banco de la República | | 1,094 | % | |
Banco Hipotecario del Uruguay | | 49 | % | |
Private banks | | 350 | % | |
Cooperatives | | 141 | % | |
Financial Houses | | 1,678 | % | |
Total | | 103 | % | |
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(1) | Total provisions as a percentage of gross non-performing loans to financial and non-financial sector. |
Source: Banco Central.
In 2003, the authorities introduced special liquid asset requirements with respect to deposits by non-residents to mitigate risks that could arise if runs on such deposits comparable to those observed during the 2002 crisis recurred.
The following table shows the number of financial institutions and percentage of loans and deposits corresponding to each category.
The Uruguayan Financial System
(as of December 31)
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| | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | | 2007 | |
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| | (Number) | | (Number) | | (Number) | | (Number) | | (Number) | | (Number) | | (Loans)(3) | | (Deposits)(4) | |
Financial Institutions: | | | | | | | | | | | | | | | | | | | | | | | | | |
State-owned(1) | | | 2 | | | 3 | | | 3 | | | 3 | | | 2 | | | 2 | | | 43.6 | % | | 42.4 | % |
Privately-owned(2) | | | 31 | | | 26 | | | 24 | | | 24 | | | 25 | | | 25 | | | 56.1 | % | | 57.5 | % |
Cooperatives(5) | | | 5 | | | 4 | | | 4 | | | 3 | | | 2 | | | 2 | | | 0.3 | % | | 0.1 | % |
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Total | | | 38 | | | 33 | | | 31 | | | 30 | | | 29 | | | 29 | | | 100.0 | % | | 100.0 | % |
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Data as of December 31, unless otherwise indicated. |
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(1) | Banco de la República, Banco Hipotecario and Nuevo Banco Comercial until 2005. |
(2) | At December 31, 2007, includes 14 banks, 6 financial houses and 5 offshore agencies (IFEs). |
(3) | Loans to non-financial sector, net of provisions. |
(4) | Non-financial private sector deposits. |
(5) | COFAC represented more than 90% of credits and deposits of this category. |
Source: Banco Central.
The following table shows the bank credit provided to the private sector by Uruguay’s financial system for the periods shown.
D-53
Bank Credit to the Private Sector
(% of total credit)
| | | | | | | | | | | | | |
| | Banco Central | | Private
Commercial Banks(1) | | Banco de la
República | |
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| | Pesos | | Foreign
Currency | | Pesos | | Foreign
Currency | | Pesos | | Foreign
Currency | |
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2003 | | 1.2 | | 0.3 | | 4.2 | | 51.7 | | 4.1 | | 38.6 | |
2004 | | 1.3 | | 0.3 | | 6.0 | | 44.8 | | 7.2 | | 40.4 | |
2005 | | 1.4 | | 0.3 | | 7.0 | | 44.5 | | 9.0 | | 36.4 | |
2006 | | 1.4 | | 0.2 | | 10.2 | | 54.0 | | 13.9 | | 20.3 | |
2007 | | 1.3 | | 1.1 | | 12.3 | | 54.5 | | 14.7 | | 16.1 | |
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Data as of December 31, 2007 unless otherwise indicated. |
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(1) | Includes private banks, financial houses and cooperatives of financial intermediation. |
Source: Banco Central.
Since the early 1980’s, the majority of bank credit provided in Uruguay has been denominated in foreign currency, principally in U.S. dollars. At December 31, 2007, the amount of credit denominated in foreign currencies represented 72% of total credit to the non-financial private sector.
The Uruguayan financial sector also includes five domestic and 11 foreign insurance companies (including the state-owned insurance company). Insurance companies are regulated on a variety of matters by Law 16,426, dated October 14, 1993, Decree 354/94, dated August 17, 1994, and several circulars issued by the Superintendencia de Seguros y Reaseguros of the Banco Central.
Banco Comercial Shareholder Dispute
JP Morgan Chase (through a subsidiary), Credit Suisse First Boston and Dresdner Bank (through a subsidiary), the three former shareholders of Banco Comercial, brought a suit before an arbitration panel alleging that Uruguay failed to comply with certain obligations assumed by the Republic in connection with the February 2002 agreement relating to the capitalization of Banco Comercial and claimed US$100 million plus certain ancillary expenses. In December 2004, the arbitration panel ruled in favor of the former shareholders and, in January 2005, the former shareholders petitioned the United States Court for the Southern District of New York to confirm the arbitration award. On March 25, 2005, the District Court confirmed the arbitral award as well as interest and litigation expenses. Uruguay’s subsequent request to stay the court’s decision was denied. In April 2005, Uruguay filed an appeal with the United States Court of Appeals for the Second Circuit seeking reversal of the judgment confirming the arbitration award. The Court of Appeals rejected Uruguay’s appeal. It noted, however, that since the judgment issued by the District Court did not direct present payment, the conflict claimed by Uruguay with an attachment order issued against the former shareholders by an Uruguayan court did not exist at that time. Concurrently, litigation is pending in a Uruguayan court against the recipients of the arbitral award and, in connection with that action, the proceeds of any payment by Uruguay of the arbitral award have been attached by the parties bringing that Uruguayan legal action.
In addition, in 2005, Uruguay filed a summons with notice in the United States against the three former shareholders and three former directors of Banco Comercial alleging intentional misconduct in the administration of Banco Comercial. In response, the defendants initiated arbitration before the ICC, based on the terms of a February 2002 agreement and asserting that Uruguay had violated the terms of such agreement in several respects. In addition, the banks and former directors successfully moved to have the proceeding in the United States stayed in favor of resolving all claims in arbitration. As a result, Uruguay’s claim for intentional misconduct was introduced as a counter claim in the arbitration in 2006. On May 7, 2008, the arbitral tribunal issued its award rejecting the claims of both parties practically in all respects, and considering that the Republic’s defense and counterclaim were not frivolous and that there were reasonable grounds to have introduced the counterclaim, only imposing on Uruguay the obligation to pay two-thirds of the expenses incurred by the banks and former directors.
D-54
SECURITIES MARKETS
Until 1994, the Montevideo Stock Exchange was the only stock exchange in Uruguay. The share of total trading volume in the Montevideo Stock Exchange represented by non-governmental securities has been stable during the last few years.
In September 1994, an Electronic Stock Exchange was established for use exclusively by banks and other financial institutions. Foreign exchange transactions and certificates of deposit account for substantially all of the total amount traded in the Electronic Stock Exchange. The aggregate securities trading volume on both exchanges reached US$2,537 million in 1998, representing approximately 12.0% of GDP. The aggregate securities trading volume on both exchanges decreased from US$2,771 million as of December 31, 2002 to US$1,348 million as of December 31, 2003. In 2004 and 2005, this trend was reversed and, as of December 31, 2004 and 2005, the aggregate securities trading volume on both exchanges increased to US$2,106 million and US$2,481 million, respectively. In 2006 and 2007, the volume of securities traded continued to rise, reaching US$7,597 million and US$9,979 million, respectively, but continues to be largely concentrated in debt securities, especially certificates of deposit.
Consolidated Montevideo Stock Exchange &
Electronic Stock Exchange Securities Trading Volume
(in millions of US$)
| | | | | | | | | | | | | | | | | | | |
| | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | | 2007(1) | |
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Private sector securities: | | | | | | | | | | | | | | | | | | | |
Equities | | US$ | 0 | | US$ | 1 | | US$ | 1 | | US$ | 1 | | US$ | 2 | | US$ | 2 | |
Bonds | | | 71 | | | 11 | | | 23 | | | 17 | | | 23 | | | 143 | |
Certificates of deposit and other | | | 1,640 | | | 414 | | | 792 | | | 1,150 | | | 6,555 | | | 8,693 | |
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Total private sector securities(1) | | | 1,711 | | | 426 | | | 816 | | | 1,168 | | | 6,580 | | | 8,837 | |
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Public sector securities: | | | | | | | | | | | | | | | | | | | |
Central Government | | | 1,052 | | | 911 | | | 1,254 | | | 1,303 | | | 1,014 | | | 1,138 | |
Public enterprises | | | 7 | | | 11 | | | 36 | | | 10 | | | 4 | | | 4 | |
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Total public sector securities(2) | | | 1,059 | | | 922 | | | 1,290 | | | 1,313 | | | 1,018 | | | 1,142 | |
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Total | | US$ | 2,771 | | US$ | 1,348 | | US$ | 2,106 | | US$ | 2,481 | | US$ | 7,597 | | US$ | 9,979 | |
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Number of listed companies: | | | | | | | | | | | | | | | | | | | |
Equities | | | 17 | | | 16 | | | 15 | | | 12 | | | 13 | | | 12 | |
Bonds and other debt issuers | | | 51 | | | 45 | | | 42 | | | 40 | | | 40 | | | 43 | |
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Total | | | 68 | | | 61 | | | 57 | | | 52 | | | 53 | | | 55 | |
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(1) | The increased trading volume of private sector securities is attributable to a requirement that pension funds invest in certificates of deposit exclusively through an authorized exchange. |
(2) | The increased trading volume of public sector securities through 2005 is attributable to increased trading in the secondary market and to a practice followed by pension fund administrators involving fixed rate instruments in order to record capital gains due to rising prices. This practice reflected the absence of a mark-to-market rule, which only became effective in 1999. |
Source: Banco Central, based on reports of the Montevideo Stock Exchange and Electronic Stock Exchange.
The Uruguayan securities market has been undergoing institutional, legal and operational changes in order to attain greater levels of activity. Banco Central has the power to regulate and supervise the securities markets, including setting professional ethical standards, requiring information, such as annual reports from listed companies, setting controls and penalties and regulating the relationship between issuers and investors in the stock market. The basic regulatory framework for the Uruguayan securities market is set forth in Law No. 16,749 governing public and private offerings of equity and debt securities in Uruguay, and Law No. 16,774 defining the necessary characteristics and terms for the regulation and supervision of mutual funds and providing management guidelines and professional secrecy and adequacy standards.
The Uruguayan capital market, in particular local investment funds, affected in recent years by the international developments leading to a reduction in capital flows to emerging markets and Uruguay’s banking and economic crisis that took place during 2002 and 2003. As of December 31, 2001, total assets under management of mutual funds stood at US$235 million. As of December 31, 2002, as a result of the financial crisis, those assets plummeted to US$8 million, and have only recently begun to increase, with assets under management at the sole mutual fund administrator in Uruguay reaching US$7 million at December 31, 2007.
D-55
PUBLIC SECTOR FINANCES
The Uruguayan public sector comprises the central government, local governments, non-financial public sector institutions (including government-owned companies) and financial public sector institutions (including Banco Central, Banco de la República and Banco Hipotecario), and a state-owned insurance company, Banco de Seguros del Estado. The Uruguayan public sector accounts reflect the revenues and expenditures of the central government. Separate accounts are kept for local governments, non-financial public sector institutions and financial public sector institutions and Banco de Seguros del Estado. Banco Central runs deficits principally due to interest payments on remunerated deposits of the financial sector and its own operational costs. Central government expenditures are financed chiefly through the collection of value-added taxes, excise taxes, corporate income taxes, net worth taxes, tariffs and other minor taxes, as well as through domestic and external borrowings, which was constrained in 2002 and the early months of 2003 until the debt reprofiling was completed, and transfers from state-owned companies. In recent years, central government expenditures have consisted primarily of wages, salaries and transfers to the social security system, with interest on public debt and the purchase of goods and services accounting for most of the balance.
D-56
The following table sets forth a summary of public sector accounts (calculated on a cash basis) and as a percentage of GDP for the periods indicated.
Public Sector Finances
(in millions of US$ and % of total GDP)
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| | 2003 | | 2004 | | 2005 | | 2006(1) | | 2007(1) | |
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Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Value added taxes | | US$ | 952 | | | 8.5 | % | US$ | 1,202 | | | 9.1 | % | US$ | 1,617 | | | 9.6 | % | US$ | 1,938 | | | 10.0 | % | US$ | 2,421 | | | 10.5 | % |
Other taxes on goods and services | | | 354 | | | 3.2 | | | 425 | | | 3.2 | | | 589 | | | 3.5 | | | 661 | | | 3.4 | | | 694 | | | 3.0 | |
Income taxes | | | 179 | | | 1.6 | | | 321 | | | 2.4 | | | 456 | | | 2.7 | | | 558 | | | 2.9 | | | 539 | | | 2.3 | |
Taxes on capital | | | 188 | | | 1.7 | | | 186 | | | 1.4 | | | 240 | | | 1.4 | | | 244 | | | 1.3 | | | 248 | | | 1.1 | |
Foreign trade taxes | | | 134 | | | 1.2 | | | 173 | | | 1.3 | | | 212 | | | 1.3 | | | 249 | | | 1.3 | | | 302 | | | 1.3 | |
Other | | | 480 | | | 4.3 | | | 360 | | | 2.7 | | | 250 | | | 1.5 | | | 339 | | | 1.6 | | | 385 | | | 1.7 | |
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Total | | | 2,286 | | | 20.5 | | | 2,666 | | | 20.2 | | | 3,365 | | | 20.2 | | | 3,959 | | | 20.5 | | | 4,588 | | | 20.0 | |
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Expenditures: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Wages and salaries(2) | | | 600 | | | 5.4 | | | 641 | | | 4.8 | | | 831 | | | 5.0 | | | 966 | | | 5.0 | | | 1,165 | | | 5.1 | |
Transfers to social security(3) | | | 985 | | | 8.8 | | | 1,044 | | | 7.9 | | | 1,237 | | | 7.4 | | | 1,351 | | | 7.0 | | | 1,569 | | | 6.8 | |
Transfer payments | | | 96 | | | 0.9 | | | 102 | | | 0.8 | | | 133 | | | 0.8 | | | 148 | | | 0.8 | | | 312 | | | 1.4 | |
Interest on public debt | | | 631 | | | 5.6 | | | 650 | | | 4.9 | | | 733 | | | 4.4 | | | 826 | | | 4.3 | | | 884 | | | 3.8 | |
Goods and services | | | 326 | | | 2.9 | | | 380 | | | 2.9 | | | 505 | | | 3.0 | | | 631 | | | 3.3 | | | 763 | | | 3.3 | |
Capital expenditures | | | 15 | | | 0.1 | | | 18 | | | 0.1 | | | 25 | | | 0.2 | | | 12 | | | 0.1 | | | 0 | | | 0.0 | |
Other | | | 128 | | | 1.1 | | | 183 | | | 1.4 | | | 210 | | | 1.3 | | | 252 | | | 1.3 | | | 338 | | | 1.5 | |
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Total | | | 2,781 | | | 24.9 | | | 3,018 | | | 22.8 | | | 3,675 | | | 22.1 | | | 4,186 | | | 21.7 | | | 5,031 | | | 21.9 | |
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Central Government extra budgetary operations | | | (19 | ) | | (0.2 | ) | | 26 | | | 0.2 | | | 38 | | | 0.2 | | | 35 | | | 0.2 | | | 60 | | | 0.3 | |
Central Government balance | | | (495 | ) | | (4.4 | ) | | (351 | ) | | (2.7 | ) | | (311 | ) | | (1.9 | ) | | (227 | ) | | (1.2 | ) | | (443 | ) | | (1.9 | ) |
Non-financial public institutions | | | 195 | | | 1.7 | | | 198 | | | 1.5 | | | 157 | | | 0.9 | | | 9 | | | 0.0 | | | 220 | | | 1.0 | |
Banco Central | | | (40 | ) | | (0.4 | ) | | (127 | ) | | (1.0 | ) | | (26 | ) | | (0.2 | ) | | (11 | ) | | (0.1 | ) | | 30 | | | 0.1 | |
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Overall surplus (deficit)(4) | | US$ | (359 | ) | | (3.2 | )% | US$ | (254 | ) | | (1.9 | )% | US$ | (142 | ) | | (0.9 | )% | US$ | (194 | ) | | (1.0 | )% | US$ | (134 | ) | | (0.6 | )% |
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Overall interest payments(5) | | US$ | 682 | | | 6.1 | % | US$ | 779 | | | 5.9 | % | US$ | 759 | | | 4.6 | % | US$ | 839 | | | 4.3 | % | US$ | 855 | | | 3.7 | % |
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Overall primary balance(6) | | US$ | 323 | | | 2.9 | % | US$ | 525 | | | 4.0 | % | US$ | 616 | | | 3.7 | % | US$ | 645 | | | 3.3 | % | US$ | 721 | | | 3.1 | % |
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(1) | Preliminary figures. |
(2) | Includes employer contributions made to social security system for employees of central government. |
(3) | Net of social security revenues received. |
(4) | Local governments not included. |
(5) | Includes central government, public enterprises and Banco Central. |
(6) | Overall balance less interest payments. |
Source: Banco Central.
D-57
In the late 1980’s, the government had large public sector deficits, and by 1989, public sector finances had deteriorated considerably, with the public sector deficit increasing to 7.0% of GDP from 4.8% in the previous year. Beginning in 1990, the government tightened fiscal policies and improved its financial condition. Several factors contributed to overall deficit reductions in 1990, 1991 and 1992, including lower interest rates and a reduction in external debt brought about by the Brady refinancing effected by the government in 1991. For more information, see “Public Sector Debt—Debt Service and Debt Restructuring.”
In 1993, the consolidated public sector deficit grew due primarily to higher transfers to social security and greater public expenditures generally. In 1994, the consolidated public sector deficit grew again due primarily to increased transfers to social security and increased capital expenditures of the central government and of public sector entities (which are included in the line item “Non-financial public institutions”). The consolidated public sector deficit was reduced in 1995, 1996 and 1997 to 1993 levels, but transfers to the social security system (including transfers to private pension fund administrators since June 1996) continued to increase as a percentage of GDP. In 1998, the consolidated public sector deficit was further reduced to 0.9% of GDP. The recession that affected the Uruguayan economy in 1999 also had an adverse impact on public sector accounts. Decreasing revenues and an increase in expenditures resulted in a consolidated public sector deficit, measured by funding sources, of 3.6% of GDP. While revenues decreased as a result of the contraction of the economy overall, expenditures were not adjusted downwards and instead increased due to the operation of automatic stabilizers, the financing of the election processes over the year, expenditures resulting from external and domestic shocks and an expansive investment policy. The rise in oil prices and in international interest rates and the drought that affected Uruguay in the second half of 1999 further increased public sector spending and reduced revenues.
During 2003, in the aftermath of the economic and financial crisis of 2002, the government adopted measures intended to generate sustainable primary surpluses. Public expenditure increases were contained, primarily by limiting increases in wages and pensions. In 2003, public sector revenues decreased by 7.9%, while public sector expenditures decreased by 9.1% in dollar terms, each compared to 2002. The 2003 consolidated public sector deficit totaled US$359 million (3.2% of GDP).
In 2004, public sector expenditures, expressed in U.S. dollars, increased by 8.5%, but declined as a percentage of GDP from 24.9% in 2003 to 22.8% in 2004, mainly as a result of increased GDP growth. Expenditures grew due to an increase in real terms in government consumption and public gross fixed investment in each case reflecting a partial recovery from the prior year’s post-crisis levels. Revenues, expressed in U.S. dollars, increased by 16.6%, but as a percentage of GDP declined slightly in 2004 in comparison to 2003. The consolidated public sector deficit totaled US$254 (1.9% of GDP) in 2004.
In 2005, the consolidated public sector expenditures totaled US$3.7 billion, an increase of 21.8% compared to 2004. Due to the recovery in economic activity, consolidated public sector revenues totaled US$3.4 billion in 2005, an increase of 26.2% compared to 2004. In 2005, the consolidated public sector recorded a deficit of US$142 million, which represented 0.9% of GDP. The overall primary balance during this period showed a surplus of 3.7% of GDP. The continued effect of high oil prices on the results of ANCAP (the state-owned oil refining company) was reflected in a decrease in the non-financial public sector enterprises’ operational surplus and contribution to the overall public sector surplus by approximately 0.6% of GDP for 2005 compared to 2004. This performance was partially offset by the reduction in the government’s transfers to cover the social security deficit by an amount equal to approximately 0.5% of GDP, due to increased economic activity and an improvement in collections.
In 2006, central government expenditures totaled US$4.2 billion, an increase of 13.9% compared to 2005. Central government revenues in 2006 totaled US$3.9 billion, an increase of 17.4% compared to 2005. In 2006, the consolidated public sector recorded a deficit of US$194 million, representing 1% of GDP. The overall primary balance was equivalent in 3.3% of GDP. In August and November 2006, the government prepaid SDR 620 million (approximately US$916 million) and SDR 727 million (approximately US$1.1 billion), respectively, advanced by the IMF under the 2005 Stand-By Facility as part of its overall debt strategy.
In 2007, central government expenditures totaled US$5.0 billion, an increase of 21.9% compared to 2006. Central government revenues in 2007 totaled US$4.6 billion, an increase of 20.0%, compared to 2006. In 2007, the consolidated public sector recorded a deficit of US$134 million, representing 0.6% of GDP.
D-58
The following table sets forth the composition of the government’s tax revenues for the periods indicated:
Composition of Tax Revenues
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| | 2003 | | 2004 | | 2005 | | 2006(1) | | 2007(1) | |
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Value-added taxes (VAT) | | | 51.8 | % | | 52.9 | % | | 54.4 | % | | 54.7 | % | | 57.8 | % |
Other taxes on goods and services | | | 20.6 | | | 19.7 | | | 19.8 | | | 18.6 | | | 16.6 | |
Income taxes | | | 9.7 | | | 14.1 | | | 15.3 | | | 15.7 | | | 12.9 | |
Taxes on capital | | | 10.2 | | | 8.2 | | | 8.1 | | | 6.9 | | | 5.9 | |
Foreign trade taxes | | | 7.3 | | | 7.6 | | | 7.1 | | | 7.0 | | | 7.2 | |
Other taxes | | | 7.6 | | | 6.9 | | | 6.1 | | | 5.8 | | | 8.5 | |
Tax refunds | | | (7.8 | ) | | (9.5 | ) | | (10.8 | ) | | (8.8 | ) | | (8.9 | ) |
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Total | | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % | | 100.0 | % |
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Source: Banco Central.
In 2003, central government revenues increased by 2.2% due primarily to the economic recovery as reflected by the 2.5% increase in GDP. Continued economic recovery in 2004 supported a 14.4% increase in tax collections and a 29.1% increase in foreign trade taxes, and resulted in a real increase of 10.9% in central government revenues. In 2005, central government revenues increased by 3.3%, with such growth driven primarily by a 7.2% increase in tax collections. In 2006, central government revenues, primarily driven by value-added tax collections, increased by US$594 million, representing 20.5% of GDP. This trend continued during 2007 with an increase in central government revenues by 20.0% driven basically by a 10.5% growth in value-added tax collections.
Value-added taxes on manufactured products are levied at scheduled rates at each stage of the production and distribution process. Most products and services are currently taxed at a rate of 22%, while certain basic goods, including most basic foodstuffs, are taxed at a lower rate of 10%, and certain other products and services, including securities, precious metals and export services, are exempted from value-added tax. Excise taxes are levied at scheduled rates on automobiles, gasoline, certain beverages, tobacco, cosmetics and certain other products. The corporate income tax in Uruguay is levied at a flat rate of 25%, taxing all corporate profits of a Uruguayan source. Import and export taxes are based on published tariff schedules. A personal income tax was introduced in Uruguay in July 2007, covering revenues of Uruguayan source, with rates ranging from 10% to 25%. As initially adopted, the personal income tax introduced in July 2007 applied to all taxpayers, including retirees. Numerous claims challenging the constitutionality of the measure were brought and, initially, the Uruguayan Supreme Court ruled in favor of the plaintiffs. In more recent decisions, however, the Supreme Court reversed its rulings and upheld the tax reform. The government has withdrawn the initial regulation and has submitted a bill contemplating a new regime for retirees, which reduces the impact of personal income tax on retirees, and would apply to a more limited number of retirees.
The government has financed its deficits through offerings of debt securities in the domestic and international markets. The government has accessed both markets repeatedly, diversifying the external sources of funding.
D-59
The following table sets forth public sector borrowings and repayments for the periods indicated:
Public Sector Borrowings and Repayments(1)
(in millions of US$ and % of total GDP)
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| | 2003 | | 2004 | | 2005 | | 2006 | | 2007 | |
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Monetary liabilities(2) | | US$ | 81 | | | 0.7 | % | US$ | 61 | | | 0.4 | % | US$ | 224 | | | 1.2 | % | US$ | 49 | | | 0.3 | % | US$ | 86 | | | 0.3 | % |
Treasury securities | | | 1,188 | | | 10.5 | | | (469 | ) | | (3.4 | ) | | 961 | | | 5.7 | | | 2,484 | | | 12.8 | | | 1,467 | | | 6.6 | |
of which Brady Bonds: | | | (262 | ) | | (2.4 | ) | | (13 | ) | | (0.1 | ) | | (117 | ) | | (0.7 | ) | | (24 | ) | | (0.1 | ) | | (3 | ) | | 0.0 | |
Loans(3) | | | 304 | | | 2.8 | | | (158 | ) | | (1.2 | ) | | (116 | ) | | (0.7 | ) | | (2,080 | ) | | (10.8 | ) | | 346 | | | 1.5 | |
Net deposits(4) | | | 19 | | | 0.3 | | | 765 | | | 5.8 | | | (115 | ) | | (0.7 | ) | | (112 | ) | | (0.6 | ) | | 175 | | | 0.6 | |
Net international reserves | | | (890 | ) | | (8.0 | ) | | (129 | ) | | (1.0 | ) | | (567 | ) | | (3.2 | ) | | (702 | ) | | (3.6 | ) | | (1,779 | ) | | (7.9 | ) |
Others(5) | | | (88 | ) | | (0.7 | ) | | 177 | | | 1.2 | | | (204 | ) | | (1.2 | ) | | 481 | | | 2.5 | | | (284 | ) | | (1.2 | ) |
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Net borrowing requirements | | US$ | 353 | | | 3.2 | % | US$ | 233 | | | 1.8 | % | US$ | 67 | | | 0.4 | % | US$ | 96 | | | 0.5 | % | US$ | 8 | | | (0.1 | %) |
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(1) | Represents aggregate borrowings in year indicated less aggregate repayments for such year. Negative numbers represent net borrowings by the Public Sector; positive numbers represent net repayments by the Public Sector. The overall balance is equivalent to the Net Borrowing Requirements of the Public Sector. |
(2) | Monetary Liabilities include Monetary Base, call and reserve deposits in pesos and Treasury bills in pesos. |
(3) | “Loans” includes both domestic and foreign loans. Since August 2002 includes loans related to the FESB. |
(4) | “Net deposits” means deposit net of credits. |
(5) | “Others” in 2002 includes financial assistance to the banking system as well as net assets related to the FESB. |
Source: Banco Central.
D-60
FISCAL POLICY
2005-2009 Budget
The Ministry of Economy and Finance and the Office of Budget and Planning are responsible for the preparation of the budget of the central government and a report on the budget prepared by the judiciary, the public education system and certain other agencies, which are submitted to the Congress every five years for its approval.
The Ministry of Economy and Finance presents an annual report on the government’s fiscal performance to Congress, at which time the budget may be updated and adjusted. The Constitution expressly forbids the executive from requesting, and Congress from passing, expenditure increases during an election year or in the year immediately following. Once Congress has approved the budget and appropriated monies for the different public expenditures, the Ministry of Economy and Finance provides funds to certain agencies of the central government and monitors expenditures. Since 1986, public expenditure estimates are periodically corrected for expected inflation. The Ministry of Economy and Finance also has the authority to review the budgets submitted for approval by the financial and non-financial public sector institutions. Municipal governments prepare their own budgets, which are reviewed by their municipal legislative councils. Congress has the authority to resolve any disputes on the budgetary process between the financial and non-financial public sector institutions and the Ministry of Economy and Finance, and between the municipal governments and the municipal legislative councils.
On December 19, 2005, the President signed into law the five-year budget for the period 2005-2009. The budget reflects the government’s priorities of achieving long-term growth and debt-sustainability balanced with an increase in infrastructure and social spending. The 2005-2009 budget is based on a medium-term macroeconomic framework and contains revenue projections and expenditure ceilings, which are consistent with the economic program Uruguay, agreed to with the IMF in June 2005. See “Public Sector Debt — External Debt.”
The budget establishes a plan for decreasing the consolidated public sector deficit from 1.9% of GDP in 2004 to 0.4% in 2009. The budget contemplates a decline in interest payments as a percentage of GDP, stipulates semi-annual revenue performance assessments and authorizes the government to lower spending should revenues be less than budgeted for any given period. The budget also contemplates a primary surplus as a percentage of GDP to 3.0% of GDP by 2008 and 2009. The government intends to earmark increased revenues for expanded infrastructure investments and social expenditures.
The government’s medium-term strategy, as outlined in the 2005-2009 budget, entails:
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| • | increasing public sector revenues through improved tax administration, tax reform, and enhanced administration of public enterprises; |
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| • | maintaining non-interest current spending as a percentage of GDP slightly above the 2005 level; |
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| • | completing all expenditures under the Plan de Emergencia (Emergency Plan) in 2007; |
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| • | increasing investment to improve infrastructure, especially in the transportation and energy sectors; |
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| • | gradually improving public sector real wages without allowing the overall cost of wages to increase as a percentage of GDP with respect to 2004 levels; and |
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| • | allocating additional government funding to priority sectors, including health and education, as defined in the Plan de Equidad (Fairness Plan). |
We can give no assurance that the assumptions on which the 2005-2009 budget is based, which in large part are outside of the government’s control, will materialize or that the government’s medium-term goals will be achieved.
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The following table shows the government’s main macroeconomic assumptions and policy targets for 2008.
Main Macroeconomic Assumptions and Policy Target for 2008
| | |
Real GDP growth | | 5.25% |
Domestic Inflation (CPI) | | 3.0-7.0% |
Overall Public Sector Primary Surplus | | 3% of GDP |
Overall Public Sector Balance | | (0.4)% of GDP |
Real Wage Growth | | 5.7% |
Current Account Deficit | | 1.0% of GDP |
Increase in Banco Central International Reserve Assets | | US$200 million |
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|
Source: Ministry of Finance.
The government targets a primary consolidated public sector surplus of 3% of GDP for 2008, compared to 3.4% of GDP in 2007, and a consolidated public sector deficit of approximately 0.4% of GDP for 2008, compared to 0.6% of GDP in 2007. Interest payments on public debt are expected to represent 3.4% of GDP in 2008. Central government expenditures are expected to increase by 0.9% of GDP in connection with the implementation of the Fairness Plan, the reform of public education, improving the efficiency of the public sector and the reform of health system.
The government submitted its annual report on the execution of the Budget 2005-2009 (“Rendición de Cuentas”) for fiscal year 2008 to the Congress. This report, currently under consideration by the Congress, contains certain amendments to the original budget, earmarking additional resources of up to US$319 million for social programs, the financing of public education, the reform of the public sector and security. The original budget contemplated an increase of US$100 million for social programs in 2008, while the government projects increasing expenditures for social programs in 2009 by US$285 million.
These additional resources will be funded by (i) additional fiscal revenues, as a result of a higher expected rate of economic growth (US$104 million), (ii) an increase in efficiency of tax, custom duties and social security contributions collection (US$65 million), (iii) a reduction in the primary fiscal surplus target from the original 4.0% to 3.0% (US$150 million), given lower projections for interest payments on public debt. The overall fiscal deficit for the consolidated public sector in 2008 has been projected at 0.4% of GDP.
The figures set forth above represent Uruguay’s forecast with respect to the Uruguayan economy for 2008. While the government believes that these assumptions and targets were reasonable when formulated, some are beyond the control or significant influence of the Government, and actual outcomes will depend on future events. Accordingly, no assurance can be given that economic results for 2008 will not differ materially from the figures set forth above.
Social Security
Since 1987, the government has been making efforts to reform Uruguay’s social security system, which is characterized by a structural deficit and which for many years absorbed an increasing percentage of Uruguay’s GDP. Uruguay’s social security system was until recently a government administered “pay-as-you-go” system, financed by a combination of contributions from employees, employers and the government. As the ratio of retirees to active workers increased, the government had to increase its contributions to cover the system’s growing structural deficit.
In September 1995, Congress enacted legislation proposed by the government to reform the social security system. The main features of that legislation are:
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| • | replacing the old pooled-resource system with a system designed to develop over the years in which a portion of each worker’s contribution will be deposited in individual investment accounts; |
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| • | increasing the minimum number of work years for eligibility of benefits to 35 years; |
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| • | making the capitalization regime mandatory for those forty years old or younger; and |
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| • | producing incentives for workers to continue working past the minimum retirement age by increasing benefits according to a formula based on age of retirement and number of years worked. |
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Individual contributions to the social security system are administered and invested by private pension fund administrators, or pension fund administrators. The regulatory framework for pension fund administrators was adopted in the first quarter of 1996 and four pension fund administrators are in operation. Pension fund administrators were required to invest 80% of their holdings in Uruguayan government bonds during their first year of operation. Since then, they have been permitted to decrease these holdings by 5% to 10% per year up to a lower limit of 30%. Currently, pension fund administrators may not invest more than 40% of their holding in Uruguayan government bonds.
A system that permits the tracking of individual contributions, which is essential for improving the administration of contributions and pension benefits, has also been established. The operations of Uruguay’s bank for social welfare and the state pension fund administration are also being modernized and decentralized. Because a substantial portion of the social security system will continue to operate as a “pay-as-you-go” system, these reforms are not expected to provide a short-term solution to the structural deficit of Uruguay’s social security system, but are intended to reduce the deficit over time. In addition, the reforms are expected to induce savings and enhance the development of a domestic securities market.
The number of Uruguayans over the age of 65 has increased during the last two decades. The following table sets forth historical and projected information regarding Uruguayans above retirement age for the periods indicated.
Uruguayans Above Retirement Age
| | | | | | | | | | | | | | | | |
| | 1975 | | 1985 | | 2000 | | 2010 | | 2025 | |
| |
| |
| |
| |
| |
| |
65-79 years | | | 226,034 | | | 268,154 | | | 334,633 | | | 336,917 | | | 401,695 | |
80 years and above | | | 46,782 | | | 60,736 | | | 94,537 | | | 119,587 | | | 149,281 | |
Total | | | 272,816 | | | 328,890 | | | 429,170 | | | 456,504 | | | 550,976 | |
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|
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|
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|
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|
| |
|
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Source: National Statistics Institute.
The increase in the number of Uruguayans above retirement age raises concerns regarding the consequent increased demand on the social security system. Significantly increased demand is not expected until the period 2010–2015. Relatively high rates of emigration of Uruguayans during the 1960’s and 1970’s and a prior reform of the social security system in 1979 contributed to easing the pressure on the social security system.
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PUBLIC SECTOR DEBT
Domestic Debt
Uruguay defines domestic debt as all peso-denominated debt and foreign currency-denominated debt known to be held by Uruguayan residents. Uruguay’s consolidated public sector deficits have been financed primarily through the issuance of U.S. dollar-denominated Treasury bills and bonds placed in the domestic market, as well as multilateral financing. In 1993, the government covered part of the deficit by drawing on Banco Central. Treasury bills and bonds dominate the local financial market where the government has issued both short-and long-term instruments. Short-term instruments are issued in U.S. dollars (with current maturities of up to 2 months) and pesos (with a wide variety of maturities). The government is authorized to issue a debt instrument named “bonos previsionales” for an amount not to exceed 80% of the transfers received by the pension fund administrators, with maturities of up to 20 years. The bonos previsionales can be denominated in pesos as well as foreign currencies, and can also be indexed based on the rate of adjustment of nominal wages. The bonos previsionales are intended to help the government close the gap generated by the reduction in the collection of social security contributions which are currently being transferred to pension fund administrators.
In April 2002, the government suspended auctions of Treasury bills denominated in U.S. dollars due to the unfavorable conditions of the market. However, Banco Central began auctioning Treasury bills denominated in pesos to conduct open market operations in the framework of the new monetary policy. See “Monetary Policy and Inflation—Monetary Policy.” In January 2003, Banco Central resumed auctioning 1-year Treasury bills denominated in U.S. dollars as financial agent of the government and, in March 2004, the monetary authority began auctioning 3-year CPI-indexed (UI) Treasury bills. In April 2004, Banco Central commenced auctioning 1½-year Treasury bills denominated in U.S. dollars. During 2005, Banco Central issued instruments denominated in U.S. dollars, pesos and UIs, with varying maturities which were determined taking into account market conditions as well as monetary policy objectives. In 2006 and 2007, Banco Central continued to issue UI and peso-denominated bills, individually and on behalf of the government. UI denominated securities were issued as instruments of monetary policy as well as a means of raising revenues for the government.
The following table sets forth information regarding gross public domestic debt incurred by the government in the periods indicated.
Gross Public Domestic Debt
(in millions of US$)
| | | | | | | | | | | | | | | | |
| | 2003 | | 2004 | | 2005 | | 2006(1) | | 2007(1) | |
| |
| |
| |
| |
| |
| |
Treasury bills(2) | | US$ | 691 | | US$ | 513 | | US$ | 399 | | US$ | 334 | | US$ | 70 | |
Treasury bonds(3) | | | 1,737 | | | 1,890 | | | 2,596 | | | 2,896 | | | 3,370 | |
Other liabilities(4) | | | 178 | | | 713 | | | 778 | | | 1,175 | | | 1,888 | |
| |
|
| |
|
| |
|
| |
|
| |
|
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Total | | US$ | 2,606 | | US$ | 3,116 | | US$ | 3,773 | | US$ | 4,405 | | US$ | 5,328 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| |
(1) | Preliminary data. |
(2) | Includes foreign and local currency-denominated Treasury bills. |
(3) | Includes foreign and local currency-denominated Treasury bonds and Eurobonds. |
(4) | Includes Brady bonds. |
Source: Banco Central.
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The following table sets forth information regarding amortization of Uruguay’s gross public domestic debt.
Amortization of Gross Public Domestic Debt
(in millions of US$)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Outstanding as of
December 31,
2007(1) | | 2008 | | 2009 | | 2010 | | 2011 | | 2012 | | 2013 | | 2014 | | 2015 to
Final
Maturity | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Treasury bills(2) | | US$ | 70 | | US$ | 70 | | US$ | 0 | | US$ | 0 | | US$ | 0 | | US$ | 0 | | US$ | 0 | | US$ | 0 | | US$ | 0 | |
Treasury bonds(3) | | | 3,370 | | | 90 | | | 143 | | | 378 | | | 494 | | | 371 | | | 171 | | | 105 | | | 1,619 | |
Other liabilities(4) | | | 1,888 | | | 377 | | | 694 | | | 180 | | | 56 | | | 30 | | | 0 | | | 0 | | | 551 | |
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|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
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Total | | US$ | 5,328 | | US$ | 537 | | US$ | 837 | | US$ | 558 | | US$ | 550 | | US$ | 401 | | US$ | 171 | | US$ | 105 | | US$ | 2,171 | |
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|
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|
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|
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|
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|
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|
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|
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|
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|
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(1) | Preliminary data. |
(2) | Includes foreign and local currency-denominated Treasury bills. |
(3) | Includes foreign and local currency-denominated Treasury bonds and Eurobonds. |
(4) | Includes Brady bonds. |
Source: Banco Central.
The following table sets forth the Uruguayan Treasury securities in circulation as of the dates indicated (in millions of U.S. dollars).
| | | | | | | | | | | | | | | | |
| | | | | Foreign Currency | | Pesos | |
| | | | |
| |
| |
December 31, | | Total | | Treasury bonds | | Treasury bills(1) | | Treasury bonds | | Treasury bills(1) | |
| |
| |
| |
| |
| |
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2002 | | | 5,680 | | | 5,101 | | 287 | | | 178 | | | 113 | | |
2003 | | | 6,485 | | | 5,191 | | 488 | | | 486 | | | 321 | | |
2004 | | | 6,689 | | | 4,988 | | 570 | | | 1,054 | | | 76 | | |
2005 | | | 7,727 | | | 5,848 | | 465 | | | 1,366 | | | 48 | | |
2006 | | | 9,902 | | | 7,609 | | 430 | | | 1,862 | | | 0 | | |
2007 | | | 11,475 | | | 7,722 | | 87 | | | 3,666 | | | 0 | | |
Source: Banco Central.
External Debt
Uruguay’s total gross public sector external debt consists of all debt of the central government, local governments, public sector enterprises and Banco Central not known to be held by Uruguayan residents, which is denominated either in domestic or foreign currencies. Gross public sector external debt totaled US$10.2 billion (or 77.2% of GDP) as of December 2004, US$10.2 billion (or 61.2% of GDP) as of December 2005, US$9.3 billion (or 48.2% of GDP) as of December 2006 and US$10.9 billion as of December 2007 (47.8% of GDP). The interest expense on Uruguay’s external debt in 2007 represented 2.9% of GDP.
As of December 31, 2007, Uruguay’s external debt was composed of direct loans in the amount of approximately US$2.5 billion, Treasury bonds (including Eurobonds and U.S. SEC-registered (Yankee) bonds) in an outstanding aggregate amount of approximately US$7.6 billion, and Treasury bills in an outstanding aggregate amount of approximately US$3 million.
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Total Gross Public External Debt
(in millions of US$, except percentages)
| | | | | | | | | | | | | | | | |
| | 2003 | | 2004 | | 2005 | | 2006(1) | | 2007(1) | |
| |
| |
| |
| |
| |
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Public sector: | | | | | | | | | | | | | | | | |
Financial public sector (BCU) | | US$ | 770 | | US$ | 1,035 | | US$ | 842 | | US$ | 50 | | US$ | 40 | |
Non-financial public sector | | | 8,787 | | | 9,172 | | | 9,335 | | | 9,262 | | | 10,952 | |
Of which: | | | | | | | | | | | | | | | | |
Treasury notes and bonds | | | 3,541 | | | 3,975 | | | 4,384 | | | 6,306 | | | 7,628 | |
Total | | US$ | 9,558 | | US$ | 10,206 | | US$ | 10,177 | | US$ | 9,311 | | US$ | 10,992 | |
| | | | | | | | | | | | | | | | |
Total gross public external debt/GDP | | | 85.4 | % | | 77.2 | % | | 61.2 | % | | 48.2 | % | | 47.8 | % |
Total public external debt/exports | | | 313.1 | % | | 239.8 | % | | 200.1 | % | | 160.6 | % | | 161.1 | % |
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|
Data as of December 31, except as otherwise indicated. |
| |
(1) | Preliminary data |
Source: Banco Central.
The following table sets forth the total public external debt, net of international reserve assets and certain other assets of Banco Central, as of the dates indicated.
Total Public External Debt, Net of International Reserve Assets
(in millions of US$)
| | | | | | | | | | | | | | | | |
| | December 31, | |
| |
| |
| | 2003 | | 2004 | | 2005 | | 2006(1) | | 2007(1) | |
| |
| |
| |
| |
| |
| |
Total gross public external debt | | US$ | 9,558 | | US$ | 10,206 | | US$ | 10,177 | | US$ | 9,311 | | US$ | 10,992 | |
Less external assets: | | | | | | | | | | | | | | | | |
Non-financial public sector | | | 413 | | | 123 | | | 200 | | | 218 | | | 482 | |
Banco Central | | | 2,344 | | | 2,845 | | | 3,687 | | | 3,382 | | | 5,288 | |
Of which: | | | | | | | | | | | | | | | | |
Banco Central international reserve assets(2) | | | 2,087 | (3) | | 2,514 | | | 3,071 | | | 3,091 | | | 4,121 | |
Other assets | | | 256 | | | 332 | | | 615 | | | 291 | | | 1,167 | |
| | | | | | | | | | | | | | | | |
Total public external debt, net of assets | | US$ | 6,800 | | US$ | 7,237 | | US$ | 6,290 | | US$ | 5,711 | | US$ | 5,222 | |
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|
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(1) | Preliminary data. |
(2) | Gold valued for each period at London market prices at end of period. |
(3) | Data for 2003 does not include US$224 million held in the FESB as of December 31. |
Source: Banco Central.
Uruguay’s public external debt is held by a variety of multilateral, bilateral and private commercial bank creditors, as well as a large number of non-resident institutions and individuals. Commercial bank creditors and multilateral organizations accounted for 58.9% of Uruguay’s public external debt at December 31, 2003, 57.9% at December 31, 2004, 53.5% at December 31, 2005, 27.3% at December 31, 2006 and 23.2% at December 31, 2007.
On March 25, 2002, Uruguay and the IMF entered into a stand-by facility for an amount of up to SDR594 million (approximately US$743 million) for a 24-month period. The facility was augmented by SDR1,158 million (approximately US$1.5 billion) on June 25, 2002, and by SDR376 million (approximately US$521 million) on August 8, 2002. On March 17, 2003 the IMF approved an extension of the facility for an additional one-year period, through March 2005 and, in August 2004, upon the request of Uruguay and in light of the improvement in its economic outlook the remaining access under the stand-by facility was reduced by SDR140 million (approximately US$204 million). In connection with these extensions of credit, the IMF waived non-observance and applicability of certain performance criteria set forth in the stand-by facility. The final disbursement under the stand-by facility was made available to Uruguay on February 23, 2005. Between December 2002 and December 2006, Uruguay reduced its exposure to these multilateral institutions by approximately US$2.0 billion, of which US$1.8 billion was to the IMF.
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On June 8, 2005, the Executive Board of the IMF approved the 2005 Stand-By Facility for Uruguay. The agreement was due to run for 36 months beginning in June 2005, provided for disbursements of up to SDR766 million (US$1.1 billion) and contemplated repayments of at least US$1.9 billion during the whole period. As part of its debt management strategy, in August and November 2006 Uruguay made two prepayments to the IMF of SDR620 million (approximately US$916 million) and SDR727 million (approximately US$1.1 billion), respectively, thereby discharging in full all of Uruguay’s outstanding obligations to the IMF. Funds for the prepayment of the obligations were obtained by issuing bonds in the international capital markets as well as from reserves. Subsequent to the IMF’s completion of its final review under the 2005 Stand-By Facility on December 22, 2006, at the request of the Uruguay, the 2005 Stand-By Facility was terminated. As part of reforms taken under the facility, Uruguay implemented a comprehensive tax reform, improved its budgetary framework and abided by firm spending controls, adjusting public tariffs on a timely basis, and reforming the specialized pension funds. Uruguay expects to continue to seek the advice and support of the World Bank and the Inter-American Development Bank from time to time through lending programs to be available for the implementation of certain structural reforms.
Uruguay is pursuing reforms to its financial system, building on the crisis resolution efforts of recent years, with a view to creating the necessary infrastructure of financial intermediation to support sustained private-sector-led growth. Priorities include the continued reform of public banks (Banco de la República and Banco Hipotecario del Uruguay), further improving the supervisory framework, and overhauling the bank resolution framework to ensure rapid and efficient resolution of banking problems should they occur.
Gross Public Sector External Debt, By Creditor
(in millions of US$ at period end)
| | | | | | | | | | | | | | | | |
| | 2003 | | 2004 | | 2005 | | 2006(1) | | 2007(1) | |
| |
| |
| |
| |
| |
| |
Multilateral organizations: | | | | | | | | | | | | | | | | |
IBRD (World Bank) | | US$ | 738 | | US$ | 803 | | US$ | 832 | | US$ | 667 | | US$ | 681 | |
IADB | | | 2,221 | | | 2,171 | | | 2,201 | | | 1,807 | | | 1,797 | |
IMF | | | 2,407 | | | 2,675 | | | 2,304 | | | 0 | | | 0 | |
Other | | | 52 | | | 65 | | | 60 | | | 45 | | | 54 | |
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|
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|
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Total multilateral organizations | | | 5,419 | | | 5,715 | | | 5,396 | | | 2,519 | | | 2,532 | |
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|
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|
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|
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|
| |
Bilateral creditors | | | 204 | | | 162 | | | 127 | | | 163 | | | 157 | |
Commercial banks | | | 214 | | | 192 | | | 45 | | | 18 | | | 16 | |
Other non-resident institutions | | | 3,567 | | | 3,976 | | | 4,383 | | | 6,306 | | | 7,628 | |
Of which holdings of: | | | | | | | | | | | | | | | | |
Treasury bills | | | 37 | | | 39 | | | 14 | | | 8 | | | 3 | |
Treasury bonds | | | 3,504 | | | 3,936 | | | 4,370 | | | 6,298 | | | 7,625 | |
Suppliers | | | 153 | | | 162 | | | 224 | | | 304 | | | 659 | |
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|
| |
|
| |
|
| |
|
| |
|
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Total | | US$ | 9,558 | | US$ | 10,206 | | US$ | 10,177 | | US$ | 9,311 | | US$ | 10,992 | |
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|
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|
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|
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|
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Source: Banco Central.
The following table sets forth public external debt denominated in foreign currency, by currency as of the date indicated.
Summary of Public External Debt Denominated By Currency
(in millions of US$, except percentages)
| | | | | | |
| | As of December 31,
2007 | | % | |
| |
| |
| |
Uruguayan pesos | | US$ | 1,690 | | 15.4 | % |
U.S. dollars | | | 8,163 | | 74.3 | |
Euros | | | 625 | | 5.7 | |
Japanese yen | | | 472 | | 4.3 | |
SDRs | | | 8 | | 0.1 | |
Other | | | 35 | | 0.3 | |
| | |
| |
| |
Total | | US$ | 10,992 | | 100.0 | % |
| |
|
| |
| |
Source: Banco Central.
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Amortization of Gross Public External Debt
(in millions of US$)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Outstanding
as of Dec. 31,
2007(1) | | 2008 | | 2009 | | 2010 | | 2011 | | 2012 | | 2013 | | 2014 | | 2015
to Final
Maturity | |
| |
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| |
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Central Government | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multilateral organizations | | | 2,335 | | | 196 | | | 207 | | | 206 | | | 222 | | | 208 | | | 188 | | | 177 | | | 932 | |
Bilateral creditors | | | 79 | | | 7 | | | 7 | | | 7 | | | 7 | | | 7 | | | 4 | | | 4 | | | 35 | |
Commercial banks | | | 8 | | | 0 | | | 1 | | | 1 | | | 1 | | | 1 | | | 1 | | | 1 | | | 4 | |
Treasury bills | | | 3 | | | 3 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | |
Treasury bonds | | | 7,625 | | | 37 | | | 43 | | | 93 | | | 297 | | | 54 | | | 48 | | | 29 | | | 7,024 | |
Other creditors | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | |
Suppliers | | | 7 | | | 1 | | | 1 | | | 1 | | | 1 | | | 1 | | | 1 | | | 1 | | | 1 | |
Total | | | 10,056 | | | 243 | | | 258 | | | 308 | | | 527 | | | 270 | | | 241 | | | 212 | | | 7,997 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Banco Central | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multilateral organizations | | | 40 | | | 18 | | | 9 | | | 2 | | | 2 | | | 2 | | | 2 | | | 2 | | | 2 | |
Bilateral creditors | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | |
Commercial banks(1) | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | |
Banco Central bills | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | |
Suppliers | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | | | 0 | |
Total | | | 40 | | | 18 | | | 9 | | | 2 | | | 2 | | | 2 | | | 2 | | | 2 | | | 2 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-Financial | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Public Enterprises | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Multilateral organizations | | | 156 | | | 22 | | | 22 | | | 22 | | | 15 | | | 15 | | | 15 | | | 15 | | | 29 | |
Bilateral creditors | | | 78 | | | 11 | | | 11 | | | 11 | | | 11 | | | 9 | | | 9 | | | 9 | | | 7 | |
Commercial banks | | | 9 | | | 1 | | | 1 | | | 1 | | | 1 | | | 1 | | | 1 | | | 1 | | | 5 | |
Suppliers | | | 653 | | | 304 | | | 20 | | | 28 | | | 28 | | | 23 | | | 22 | | | 22 | | | 205 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total | | | 896 | | | 337 | | | 53 | | | 61 | | | 54 | | | 49 | | | 48 | | | 48 | | | 247 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | 10,992 | | | 598 | | | 321 | | | 371 | | | 583 | | | 321 | | | 291 | | | 261 | | | 8,246 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Source: Banco Central.
D-68
Total Public Debt
The following tables set forth a list of Uruguayan public bonds issued and publicly held as of December 31, 2007.
Public Internal Bonds Issued Within Uruguay
(in millions of US$)
| | | | | | |
Title | | Annual interest rate (%) | | Date of Final
Maturity | | Amount raised
(millions of US$) |
| |
| |
| |
|
Treasury Bonds - Serie 48 | | Libor + 1.0% US$ | | May 2009 | | 50 |
Treasury Bonds - Serie 49 | | Libor + 1.0% US$ | | June 2012 | | 60 |
Treasury Bonds - Serie 50 | | Libor + 1.0% US$ | | August 2012 | | 40 |
Treasury Bonds - Serie 51 | | Libor + 1.0% US$ | | September 2012 | | 50 |
Treasury Bonds - Serie 52 | | Libor + 1.0% US$ | | February 2010 | | 90 |
Treasury Bonds - Serie 53 | | Libor + 1.75% US$ | | March 2011 | | 11 |
Treasury Bonds - Serie 54 | | Libor + 2% US$ | | May 2013 | | 105 |
| | | | | | |
Treasury Bonds - Serie 30 TF | | 7.5% US$ | | March 2011 | | 299 |
Treasury Bonds - Serie 31 TF | | 9.75% US$ | | February 2012 | | 40 |
| | | | | | |
Previsional Bond 2010 | | 8% US$ | | February 2010 | | 50 |
| | | | | | |
Previsional Bond 2008 | | 2.625% UR | | June 2008 | | 9 |
UI Bond | | 7% UI | | June 2012 | | 1,652 |
Zero-coupon bond | | 8.25% US$ | | Various 2014 - 2020 | | 2 |
| | | | | | |
Bonds due 2010 Fixed Rate | | 7.50% | | December 2010 | | 25 |
Bonds due 2012 Fixed Rate | | 7.63% | | March 2012 | | 98 |
Bonds due 2018 Fixed Rate | | 8.00% | | February 2018 | | 41 |
Bonds due 2019 Fixed Rate | | 7.50% | | March 2019 | | 325 |
Bonds due 2020 Fixed Rate | | 9.75% | | February 2020 | | 22 |
Bonds due 2011 Fixed Rate | | 4.00% | | November 2011 | | 21 |
Bonds due 2008 Floating Rate | | Libor + 1.75 | | December 2008 | | 41 |
Bonds due 2009 Floating Rate | | Libor + 1.5 | | November 2009 | | 20 |
Bonds due 2010 Floating Rate | | Libor + 1.5 | | September 2010 | | 33 |
Bonds due 2011 Floating Rate | | Libor + 1.5 | | August 2011 | | 25 |
Bonds due 2017 Floating Rate | | Libor + 1 | | June 2017 | | 14 |
Bonds due 2018 Floating Rate | | Libor + 2 | | March 2018 | | 3 |
Bonds due 2010 Incremental Rate | | Starting from 4% + 0.5% annual until 2009 reaching 7% | | June 2010 | | 185 |
Bonds due 2013 Incremental Rate | | Starting from 4% + 0.5% annual until 2009 reaching 7% | | May 2013 | | 325 |
Bonds due 2018 Incremental Rate | | Starting from 4% + 0.5% annual until 2009 reaching 7% | | April 2018 | | 322 |
Source: Banco Central.
D-69
Public External Bonds Issued Outside Uruguay
(in millions of US$)
| | | | | | |
Title | | Annual interest rate (%) | | Date of final maturity | | Amount raised
(millions of US$) |
| |
| |
| |
|
Global Bond 2008 | | 7.000% US$ | | April 2008 | | 250 |
Global Bond 2009 | | 7.25% US$ | | May 2009 | | 250 |
Global Bond 2010 | | 8.75 % US$ | | June 2010 | | 300 |
Global Bond 2027 | | 7.875% US$ | | July 2027 | | 510 |
Global Bond 2012 | | 7.625% US$ | | January 2012 | | 410 |
Global Bond 2009 | | 7.875% US$ | | March 2009 | | 250 |
| | | | | | |
Eurobonds - Euros 2001 1a | | 7 % EUROS | | June 2011 | | 294 |
| | | | | | |
Bono vto. 2017 9,25% | | 9.250% | | May 2017 | | 500 |
Mat.Ext.Bonds. 7 7/8% 18/11/08 | | 7.875% | | November 2008 | | 84 |
Mat.Ext. Bonds 7% 01/04/2013 | | 7.00% | | April 2013 | | 64 |
Mat Ext Bono 7.875% 25/03/2014 | | 7.88% | | March 2014 | | 20 |
Mat Ext Bono 7.25% 4/05//2014 | | 7.25% | | May 2014 | | 31 |
Mat Ext Bono 8.75 22.06.2015 | | 8.75% | | June 2015 | | 51 |
Mat Ext Bono 7.625 %20.01.2017 | | 7.63% | | January 2017 | | 41 |
Mat ext Bono 8.375 26/09/2011 | | 8.38% | | September 2011 | | 61 |
| | Max 7.875%; initially 3.875% | | | | |
Benchmark Bond 7.875% PIK | | increasing1% p.a. until 2007 | | January 2033 | | 1,128 |
Benchmark Bond 7.5 % | | 7.50% | | March 2015 | | 1,059 |
Benchmark Bond 7.25% | | 7.25% | | February 2011 | | 500 |
FRN due 2010 | | Libor + 0.875% | | January 2010 | | 5 |
FRN due 2009 | | Libor + 1% | | July 2009 | | 1 |
Sec USD 200:0 UBS Global 2022 (1) | | 8.00% | | November 2022 | | 1,805 |
Bono Global 2036 | | 7.63% | | March 2036 | | 1,286 |
| | | | | | |
Yen Bond due 2011 | | 2.50% | | March 2011 | | 205 |
Yen Bond due 2017 | | 2.23% | | March 2017 | | 266 |
| | | | | | |
7% Bond due 2012 | | 7.00% | | September 2012 | | 138 |
7% Bond due 2019 | | 7.00% | | June 2019 | | 173 |
Deutsche - UBS euros 300: | | 6.88% | | January 2016 | | 441 |
| | | | | | |
6.375% UF Bond due 2016 | | 6.38% | | March 2016 | | 3 |
| | | | | | |
Global Indexed Peso Bonds 2nd series | | 5.00% | | September 2018 | | 847 |
Global Indexed Peso Bonds 3rd series | | 4.25% | | April 2027 | | 595 |
Global Indexed Peso Bonds 4th series | | 3.70% | | June 2037 | | 570 |
Source: Banco Central.
The following table sets forth information regarding total external public debt service for the periods indicated.
D-70
Total External Public Debt Service(1)
(in millions of US$, except percentages)
| | | | | | | | | | | | | | | | |
| | 2003 | | 2004 | | 2005 | | 2006(1)(2) | | 2007(2) | |
| |
| |
| |
| |
| |
| |
Interest payments | | US$ | 435 | | US$ | 491 | | US$ | 584 | | US$ | 655 | | US$ | 670 | |
Amortization | | | 956 | | | 821 | | | 1,114 | | | 4,211 | | | 354 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total | | US$ | 1,391 | | US$ | 1,312 | | US$ | 1,698 | | US$ | 4,866 | | US$ | 1,024 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total debt service/exports of goods and services | | | 45.6 | % | | 30.5 | % | | 33.4 | % | | 83.9 | % | | 15.0 | % |
| |
|
(1) | Excludes interest on non-resident banking deposits. |
| |
(2) | Preliminary data. During 2006 the Republic applied US$2,970 million to prepay loans to the IMF, the World Bank and the IADB. |
Source: Banco Central.
The following table sets forth information regarding total gross public debt as of the dates indicated.
Total Gross Public Debt
(in millions of US$)
| | | | | | | | | | | | | | | | |
| | 2003 | | 2004 | | 2005 | | 2006(1) | | 2007(1) | |
| |
| |
| |
| |
| |
| |
Gross public external debt | | US$ | 9,558 | | US$ | 10,206 | | US$ | 10,177 | | US$ | 9,311 | | US$ | 10,992 | |
Gross public domestic debt(2) | | | 2,606 | | | 3,116 | | | 3,773 | | | 4,405 | | | 5,328 | |
Banco Central | | | 576 | | | 931 | | | 1,229 | | | 1,726 | | | 2,665 | |
Non-financial public sector | | | 2,029 | | | 2,185 | | | 2,544 | | | 2,679 | | | 2,663 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total gross public debt | | US$ | 12,163 | | US$ | 13,322 | | US$ | 13,949 | | US$ | 13,717 | | US$ | 16,321 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| |
|
Data as of December 31, except as otherwise indicated. |
| |
(1) | Preliminary data. |
(2) | Public debt with Uruguayan residents excluding Treasury bonds and Treasury bills held by the public sector. |
Source: Banco Central.
The following table sets forth information regarding the amortization of total gross public debt.
Amortization of Total Gross Public Debt
(in millions of US$)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Outstanding as of
December 31,
2007(1) | | 2008 | | 2009 | | 2010 | | 2011 | | 2012 | | 2013 | | 2014 | | 2014 to Final
Maturity | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Gross public external debt | | US$ | 10,992 | | US$ | 598 | | US$ | 321 | | US$ | 371 | | US$ | 583 | | US$ | 321 | | US$ | 291 | | US$ | 261 | | US$ | 8,246 | |
Gross public domestic debt | | | 5,328 | | | 537 | | | 837 | | | 558 | | | 550 | | | 401 | | | 171 | | | 105 | | | 2,171 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Total | | US$ | 16,321 | | US$ | 1,135 | | US$ | 1,157 | | US$ | 929 | | US$ | 1,133 | | US$ | 722 | | US$ | 462 | | US$ | 366 | | US$ | 10,416 | |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Source: Banco Central.
Debt Service and Debt Restructuring
Uruguay has a long-standing tradition of prompt service of its external debt obligations, interrupted only in the 1930s when the severe worldwide economic contraction led to the delay of some payments and very briefly in mid-1965 when Banco de la República incurred some arrears for approximately two to three months. The regional debt crisis, which started in 1982, resulted in growing unwillingness on the part of foreign commercial banks to lend to the region. Reduced new lending led Uruguay to seek the renegotiation of repayment obligations to commercial banks in 1983, 1986 and 1988, but unlike several other countries in the region, during this period Uruguay did not have any arrears of either interest or principal.
D-71
In 1983, Uruguay rescheduled US$693 million of principal falling due between 1983 and 1984. Uruguay also obtained US$230 million of new lending and maintained US$87 million in public and private sector short-term trade lines. In 1986, negotiations with commercial bank creditors resulted in the rescheduling of US$2.1 billion of principal due between 1985 and 1989 and in new lending totaling US$45 million. In 1988, US$1.8 billion of debt originally due between 1985 and 1991 was rescheduled. The 1988 refinancing agreement also reduced the spread over 3-month LIBOR on the debt covered by the 1986 agreement to 0.875% from 1.375% and extended the maturity schedule from 1996 to 2004.
A debt-to-equity swap program, established in 1987, provides a means for the cancellation of debt owed to international commercial banks. Since 1988, a total of US$168 million of external debt has been cancelled through the debt-to-equity swap program and an additional US$15 million of external debt has been extinguished through a related operation. Most of the investments under this program have involved tourism and forestry activities.
In the last quarter of 1990, under the initiative of U.S. Secretary of the Treasury Nicholas Brady, Uruguay began to negotiate a restructuring program with its commercial bank creditors to reduce its debt burden, lengthen the maturity profile of its debt and obtain new sources of funds in order to be able to channel necessary resources into projects for further economic growth and development. In January 1991, Uruguay reached agreement with its commercial bank creditors covering US$1.6 billion in debt, representing 21.7% of its total gross external debt and 100% of the public sector debt owed to commercial banks.
Of the US$1.6 billion of commercial bank debt covered by Uruguay’s restructuring program:
| | |
| • | US$530 million was converted into 30-year bonds (par bonds, collateralized with U.S. Treasury bonds and enhanced by rolling interest rate guarantees) with a fixed annual interest rate of 6.75%; |
| | |
| • | US$448 million was converted into debt conversion notes maturing in February 2007 with a coupon of LIBOR plus 0.875% and a seven-year grace period as to the amortization of principal; and |
| | |
| • | the remaining US$633 million was repurchased for cash at a cost of US$354 million. |
Under this program, Uruguay also obtained new funds through the issuance of bonds due 2006 having an aggregate principal amount of US$89 million. The Bonds due 2006 had a seven-year grace period as to the amortization of principal and accrued interest at six-month LIBOR plus 1.0%.
After 1991, Uruguay’s public sector benefited from lower debt service costs resulting from the reduced amount of net debt outstanding, the lower interest rate on the Bonds and the extension of the country’s debt-maturity profile. In October 1999, Uruguay consummated an exchange offer of US$85,000,000 of its 30-year collateralized par Bonds due 2021 for US$85,000,000 of its uncollateralized 7 7/8% Bonds due 2027. In December 2001, Uruguay repurchased and cancelled US$115 million of the Banco Central’s outstanding Debt Conversion Bonds due 2007. In 2003, Uruguay exchanged US$24 million principal amount of Par A and Par B Bonds for US$11.5 million cash and UI Bonds due 2012 for the UI equivalent of US$11.5 million.
On April 10, 2003, the Republic launched two concurrent offers inviting owners of certain of the Republic’s and Banco Central’s foreign currency-denominated bonds to tender their old bonds in exchange for newly issued bonds. Uruguay also solicited the consent of holders of a Yen denominated bond to amend the terms and conditions of that bond. The transactions were designed to adjust Uruguay’s debt profile and make it sustainable.
D-72
Uruguay attracted the support of holders of 92.8% of its debt subject to the offers and consent solicitation, which resulted in the issuance of the new series of debt securities detailed below:
Amounts of New Bonds Issued Pursuant to the April 2003 Offers
as of June 30, 2003
| | | | | | |
New Bonds Issued | | ISIN | | Aggregate Principal
Amount Issued | |
| |
| |
| |
Benchmark Bonds | | | | | | |
7.25% Bonds due 2011 (USD) | | US917288AY81 | | US$ | 500,000,000 | * |
7.50% Bonds due 2015 (USD) | | US917288AZ56 | | US$ | 1,059,435,126 | ** |
7.875% PIK Bonds due 2033 (USD) | | US917288BA96 | | US$ | 1,055,579,094 | |
| | | | | | |
Maturity Extension Bonds | | | | | | |
7.875% Bonds due 2008 (USD) | | US917288AL60 | | US$ | 83,641,325 | |
Floating Rate Notes due 2009 (USD) | | US917288AM44 | | US$ | 1,448,051 | |
Floating Rate Notes due 2010 (USD) | | US917288AN27 | | US$ | 5,399,146 | |
Floating Rate Notes due 2010 (GBP) | | XS0167136190 | | | — | |
8.375% Bonds due 2011 (USD) | | US917288AP74 | | US$ | 60,752,000 | |
Convertible Floating Rate Notes due 2012 (USD) | | US917288AQ57 | | | — | |
7.00% (UF) Notes due 2012 (CLP) | | US917288AR31 | | | — | |
7.00% Notes due 2012 (EUR) | | XS0167136786 | | € | 93,801,000 | |
7.00% Bonds due 2013 (USD) | | US917288AS14 | | US$ | 64,194,000 | |
7.875% Bonds due 2014 (USD) | | US917288AT96 | | US$ | 20,048,800 | |
7.25% Bonds due 2014 (USD) | | US917288AU69 | | US$ | 31,467,200 | |
8.75% Bonds due 2015 (USD) | | US917288AV43 | | US$ | 50,639,260 | |
6.375% (UF) Notes due 2016 (CLP) | | US917288AW26 | | CLP$ | 1,470,000,000 | |
7.625% Bonds due 2017 (USD) | | US917288AX09 | | US$ | 41,147,100 | |
7.00% Notes due 2019 (EUR) | | XS0167137834 | | € | 117,661,000 | |
| |
|
* | Includes US$53,104,797 issued on June 25, 2003. |
** | Includes US$50,879,939 issued on June 12, 2003 in a private exchange for ¥6,330,000,000 principal amount of amended Samurai Bonds. |
Since the completion of its 2003 debt reprofiling, Uruguay has accessed the international capital markets repeatedly and applied the proceeds raised to gradually lengthen its debt maturity profile.
On October 19, 2006, Uruguay launched an exchange offer to holders of certain series of its outstanding bonds (with maturities from 2008 through 2027) to tender their bonds in exchange for newly issued bonds or, in certain cases, for cash. Concurrently, Uruguay issued US$500,000,000 of its 8.00% bonds due 2036. The transactions were designed to improve Uruguay’s debt profile. Uruguay attracted the support of holders of 52%, or US$1,160 million aggregate principal amount, of the bonds invited to participate in its offers. In the case of the holders of the bonds due 2011 and 2015, the levels of participation were approximately 60% of the outstanding principal amount of those bonds.
In December 2007, Uruguay cancelled the equivalent of approximately US$240 million of its outstanding debt securities, which were acquired from the market through international and domestic cash tender offers.
From time to time, Uruguay engages in liability management transactions as part of its overall debt management strategy.
Debt Record
Uruguay has regularly met all principal and interest obligations on its external debt for over 30 years. Prior to that, Uruguay had payment arrears on external debt in 1965 for a short period of months and in the 1930’s during the international economic recession.
D-73
TABLES AND SUPPLEMENTAL INFORMATION
Table 1: Gross Public Debt
(in millions of US$)
| | | | | | | | | | | | | | | | |
| | | | | Of which: | | | | |
| | Amount
outstanding
as of Dec. 31, 2007 | |
| | Gross Public Debt
as of Dec. 31,
2007 | |
| | | Internal Debt
(with residents) | | Internal Debt
(with public sector) | | External Debt
(with non-residents) | | |
| |
| |
| |
| |
| |
| |
Direct Debt of Central Government | | US$ | 13,747 | | US$ | 3,440 | | US$ | 399 | | US$ | 9,908 | | US$ | 13,348 | |
| | | | | | | | | | | | | | | | |
Direct Loans | | | 2,280 | | | 0 | | | 0 | | | 2,280 | | | 2,280 | |
Treasury Bonds and Eurobonds | | | 11,388 | | | 3,370 | | | 393 | | | 7,625 | | | 10,995 | |
Treasury Bills | | | 79 | | | 70 | | | 6 | | | 3 | | | 73 | |
| | | | | | | | | | | | | | | | |
Other public debt | | US$ | 3,255 | | US$ | 1,888 | | US$ | 283 | | US$ | 1,085 | | US$ | 2,973 | |
| | | | | | | | | | | | | | | | |
Banco Central Bills | | | 2,397 | | | 2,115 | | | 283 | | | 0 | | | 2,115 | |
Guaranteed Debt | | | 406 | | | 4 | | | 0 | | | 402 | | | 406 | |
Other External Debt | | | 683 | | | 0 | | | 0 | | | 683 | | | 683 | |
Other Domestic Debt | | | (231 | ) | | (231 | ) | | 0 | | | 0 | | | (231 | ) |
| | | | | | | | | | | | | | | | |
Total | | US$ | 17,002 | | US$ | 5,328 | | US$ | 681 | | US$ | 10,992 | | US$ | 16,321 | |
| |
|
|
|
|
|
|
|
| |
|
| |
|
|
|
|
|
Totals may differ due to rounding. |
|
Source: Banco Central. |
D-74
Table 2: Direct Loans
(in millions of US$)
| | | | | | | | | | | | | |
| | | | | | | | | | Of Which: | |
| | | | | | | | Amount
Outstanding
as of
Dec. 31, 2007 | |
|
|
| |
Lender | | Interest
Rate | | Issue
Date | | Final
Maturity | | | Internal Debt
(with residents) | | External Debt
(with non-
residents) | |
| |
| |
| |
| |
| |
| |
| |
ARTIGIANCASSA | | 7.00 | | 09/09/04 | | 09/09/43 | | 1 | | 0 | | 1 | |
The World Bank | | 2.39 | | 04/15/03 | | 10/15/18 | | 92 | | 0 | | 92 | |
Inter-American Development Bank | | 4.96 | | 12/20/02 | | 12/15/27 | | 26 | | 0 | | 26 | |
Inter-American Development Bank | | 1.22 | | 11/21/03 | | 11/21/23 | | 200 | | 0 | | 200 | |
Banque Française du Commerce Exterieur-P | | 2.00 | | 08/28/89 | | 12/31/22 | | 2 | | 0 | | 2 | |
Banque Française du Commerce Exterieur-P | | 2.00 | | 08/28/89 | | 06/30/22 | | 0 | | 0 | | 0 | |
Banque Française du Commerce Exterieur-P | | 2.00 | | 08/28/89 | | 06/30/21 | | 0 | | 0 | | 0 | |
CREDIMAT II | | 4.50 | | 11/23/93 | | 12/30/13 | | 1 | | 0 | | 1 | |
Credit National-Paris | | 2.00 | | 08/28/89 | | 12/31/21 | | 1 | | 0 | | 1 | |
Credit National-Paris | | 2.00 | | 08/28/89 | | 12/31/21 | | 1 | | 0 | | 1 | |
Credit National-Paris | | 2.00 | | 08/28/89 | | 09/30/20 | | 1 | | 0 | | 1 | |
Credit National-Paris | | 2.00 | | 08/28/89 | | 09/30/22 | | 1 | | 0 | | 1 | |
Credit National-Paris | | 2.00 | | 12/05/84 | | 12/31/15 | | 1 | | 0 | | 1 | |
Credit National-Paris | | 2.00 | | 12/05/84 | | 12/31/15 | | 5 | | 0 | | 5 | |
Eximbank | | 3.05 | | 12/26/97 | | 12/26/12 | | 15 | | 0 | | 15 | |
Inter-American Development Agency | | 5.15 | | 12/08/05 | | 12/08/30 | | 0 | | 0 | | 0 | |
F.I.D.A. | | 5.83 | | 07/04/01 | | 01/01/19 | | 5 | | 0 | | 5 | |
FONPLATA | | 7.00 | | 06/29/93 | | 09/13/13 | | 8 | | 0 | | 8 | |
FONPLATA | | 7.88 | | 12/19/96 | | 12/31/08 | | 3 | | 0 | | 3 | |
Instituto de Crédito Oficial-Madrid | | 1.25 | | 10/02/92 | | 10/26/22 | | 7 | | 0 | | 7 | |
Instituto de Crédito Oficial-Madrid | | 1.25 | | 05/12/93 | | 05/15/23 | | 25 | | 0 | | 25 | |
Instituto de Crédito Oficial-Madrid | | 1.25 | | 07/01/94 | | 07/12/24 | | 10 | | 0 | | 10 | |
Instituto de Crédito Oficial-Madrid | | 1.25 | | 07/01/94 | | 08/01/24 | | 6 | | 0 | | 6 | |
Instituto de Crédito Oficial-Madrid | | 1.25 | | 07/01/94 | | 08/03/24 | | 2 | | 0 | | 2 | |
Instituto de Crédito Oficial-Madrid | | 1.25 | | 03/23/93 | | 04/20/23 | | 2 | | 0 | | 2 | |
Instituto de Crédito Oficial-Madrid | | 2.00 | | 04/07/89 | | 02/12/10 | | 0 | | 0 | | 0 | |
Inter-American Development Agency | | 5.41 | | 12/12/06 | | 11/04/31 | | 50 | | 0 | | 50 | |
Inter-American Development Bank | | 6.19 | | 12/21/01 | | 12/21/26 | | 54 | | 0 | | 54 | |
Inter-American Development Bank | | 2.00 | | 05/17/74 | | 05/17/09 | | 1 | | 0 | | 1 | |
Inter-American Development Bank | | 2.00 | | 07/26/84 | | 07/26/14 | | 2 | | 0 | | 2 | |
Inter-American Development Bank | | 2.00 | | 07/24/84 | | 07/24/14 | | 2 | | 0 | | 2 | |
Inter-American Development Bank | | 6.97 | | 07/30/99 | | 07/30/24 | | 45 | | 0 | | 45 | |
Inter-American Development Bank | | 4.00 | | 12/10/80 | | 12/15/08 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 2.00 | | 04/25/74 | | 04/24/10 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 6.29 | | 11/30/92 | | 11/30/12 | | 24 | | 0 | | 24 | |
Inter-American Development Bank | | 6.29 | | 12/23/91 | | 07/29/16 | | 4 | | 0 | | 4 | |
Inter-American Development Bank | | 6.29 | | 09/03/92 | | 09/03/12 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 6.29 | | 11/30/92 | | 11/30/12 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 6.29 | | 06/15/94 | | 07/13/15 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 6.97 | | 04/04/97 | | 04/07/17 | | 67 | | 0 | | 67 | |
Inter-American Development Bank | | 6.29 | | 12/21/92 | | 12/21/17 | | 17 | | 0 | | 17 | |
Inter-American Development Bank | | 2.00 | | 04/25/74 | | 04/30/09 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 6.29 | | 12/21/92 | | 12/21/17 | | 10 | | 0 | | 10 | |
Inter-American Development Bank | | 6.97 | | 03/14/98 | | 03/14/18 | | 11 | | 0 | | 11 | |
Inter-American Development Bank | | 6.97 | | 07/07/95 | | 07/07/15 | | 1 | | 0 | | 1 | |
Inter-American Development Bank | | 7.10 | | 12/21/98 | | 12/21/18 | | 11 | | 0 | | 11 | |
Inter-American Development Bank | | 7.10 | | 12/09/98 | | 12/09/18 | | 106 | | 0 | | 106 | |
Inter-American Development Bank | | 6.29 | | 02/19/88 | | 08/19/08 | | 2 | | 0 | | 2 | |
Inter-American Development Bank | | 6.29 | | 08/12/91 | | 08/12/11 | | 40 | | 0 | | 40 | |
Inter-American Development Bank | | 6.29 | | 12/29/90 | | 07/06/16 | | 12 | | 0 | | 12 | |
Inter-American Development Bank | | 6.29 | | 11/30/92 | | 12/16/12 | | 1 | | 0 | | 1 | |
Inter-American Development Bank | | 2.00 | | 03/29/84 | | 03/29/14 | | 4 | | 0 | | 4 | |
Inter-American Development Bank | | 6.29 | | 10/31/88 | | 10/31/08 | | 1 | | 0 | | 1 | |
Inter-American Development Bank | | 0.00 | | 08/22/05 | | 08/22/25 | | 1 | | 0 | | 1 | |
Inter-American Development Bank | | 6.29 | | 12/27/93 | | 12/27/18 | | 17 | | 0 | | 17 | |
Inter-American Development Bank | | 6.29 | | 08/12/91 | | 08/12/11 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 8.25 | | 12/10/80 | | 12/15/08 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 2.00 | | 07/26/84 | | 07/26/14 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 6.29 | | 04/08/94 | | 04/08/19 | | 17 | | 0 | | 17 | |
Inter-American Development Bank | | 6.97 | | 04/07/97 | | 04/07/22 | | 43 | | 0 | | 43 | |
Inter-American Development Bank | | 2.00 | | 10/31/88 | | 04/08/19 | | 1 | | 0 | | 1 | |
Inter-American Development Bank | | 6.97 | | 11/28/97 | | 11/28/17 | | 19 | | 0 | | 19 | |
Inter-American Development Bank | | 6.97 | | 08/02/97 | | 08/02/17 | | 85 | | 0 | | 85 | |
D-75
| | | | | | | | | | | | | |
| | | | | | | | | | Of Which: | |
| | | | | | | | Amount
Outstanding
as of
Dec. 31, 2007 | |
|
|
| |
Lender | | Interest
Rate | | Issue
Date | | Final
Maturity | | | Internal Debt
(with residents) | | External Debt
(with non-
residents) | |
| |
| |
| |
| |
| |
| |
| |
Inter-American Development Bank | | 6.97 | | 04/07/97 | | 04/07/17 | | 6 | | 0 | | 6 | |
Inter-American Development Bank | | 6.29 | | 03/19/96 | | 03/19/16 | | 85 | | 0 | | 85 | |
Inter-American Development Bank | | 2.00 | | 05/17/74 | | 05/17/09 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 6.29 | | 12/23/91 | | 01/29/17 | | 15 | | 0 | | 15 | |
Inter-American Development Bank | | 6.29 | | 03/18/96 | | 03/18/16 | | 24 | | 0 | | 24 | |
Inter-American Development Bank | | 6.29 | | 01/29/92 | | 07/29/16 | | 4 | | 0 | | 4 | |
Inter-American Development Bank | | 6.29 | | 12/23/91 | | 02/24/16 | | 13 | | 0 | | 13 | |
Inter-American Development Bank | | 6.29 | | 03/18/96 | | 03/18/21 | | 30 | | 0 | | 30 | |
Inter-American Development Bank | | 0.00 | | 12/15/00 | | 12/15/25 | | 3 | | 0 | | 3 | |
Inter-American Development Bank | | 6.97 | | 09/28/01 | | 09/28/21 | | 140 | | 0 | | 140 | |
Inter-American Development Bank | | 0.00 | | 09/28/01 | | 09/28/21 | | 3 | | 0 | | 3 | |
Inter-American Development Bank | | 6.97 | | 07/30/01 | | 07/30/21 | | 5 | | 0 | | 5 | |
Inter-American Development Bank | | 0.00 | | 11/08/01 | | 11/08/21 | | 70 | | 0 | | 70 | |
Inter-American Development Bank | | 6.97 | | 03/17/01 | | 03/17/21 | | 14 | | 0 | | 14 | |
KREDITANSTAL | | 2.00 | | 11/23/93 | | 12/30/23 | | 6 | | 0 | | 6 | |
PARIBAS - PARIS | | 2.00 | | 08/28/89 | | 03/31/23 | | 1 | | 0 | | 1 | |
THE OECF TOKIO | | 4.00 | | 10/09/89 | | 11/20/14 | | 1 | | 0 | | 1 | |
THE OECF TOKIO | | 3.25 | | 10/09/89 | | 10/20/14 | | 0 | | 0 | | 0 | |
The World Bank | | 6.48 | | 03/08/00 | | 12/15/14 | | 57 | | 0 | | 57 | |
The World Bank | | 6.18 | | 10/06/98 | | 10/06/13 | | 16 | | 0 | | 16 | |
The World Bank | | 5.83 | | 10/06/98 | | 10/15/13 | | 39 | | 0 | | 39 | |
The World Bank | | 8.59 | | 01/15/94 | | 01/15/09 | | 9 | | 0 | | 9 | |
The World Bank | | 5.83 | | 07/01/97 | | 04/15/12 | | 31 | | 0 | | 31 | |
The World Bank | | 6.48 | | 02/26/98 | | 12/15/12 | | 50 | | 0 | | 50 | |
The World Bank | | 8.59 | | 04/28/95 | | 04/30/10 | | 2 | | 0 | | 2 | |
The World Bank | | 8.59 | | 09/16/94 | | 09/30/09 | | 4 | | 0 | | 4 | |
The World Bank | | 6.18 | | 08/22/01 | | 08/15/16 | | 2 | | 0 | | 2 | |
The World Bank | | 5.83 | | 08/08/01 | | 03/15/16 | | 16 | | 0 | | 16 | |
Inter-American Development Bank | | 1.76 | | 06/18/02 | | 08/15/22 | | 108 | | 0 | | 108 | |
Bank of China | | 5.00 | | 11/07/88 | | 12/31/13 | | 4 | | 0 | | 4 | |
Inter-American Development Bank | | 6.97 | | 12/15/03 | | 12/15/28 | | 14 | | 0 | | 14 | |
The World Bank | | 2.28 | | 08/08/02 | | 10/15/17 | | 152 | | 0 | | 152 | |
The World Bank | | 2.15 | | 06/17/02 | | 04/15/17 | | 26 | | 0 | | 26 | |
Inter-American Development Bank | | 4.85 | | 08/22/05 | | 08/22/25 | | 125 | | 0 | | 125 | |
Inter-American Development Bank | | 3.11 | | 11/17/04 | | 11/17/24 | | 29 | | 0 | | 29 | |
The World Bank | | 3.92 | | 06/16/05 | | 04/15/20 | | 6 | | 0 | | 6 | |
The World Bank | | 3.62 | | 06/16/05 | | 03/15/20 | | 75 | | 0 | | 75 | |
The World Bank | | 3.69 | | 06/16/05 | | 04/15/20 | | 26 | | 0 | | 26 | |
The World Bank | | 5.93 | | 06/21/07 | | 04/15/22 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 5.63 | | 07/26/06 | | 06/15/31 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 5.41 | | 08/26/06 | | 06/15/31 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | | | 01/22/07 | | 01/22/32 | | 1 | | 0 | | 1 | |
The World Bank | | 5.79 | | 06/21/07 | | 04/15/22 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 5.41 | | 10/26/06 | | 10/26/31 | | 1 | | 0 | | 1 | |
The World Bank | | 5.93 | | 03/28/07 | | 10/15/21 | | 1 | | 0 | | 1 | |
Inter-American Development Bank | | 5.61 | | 09/25/07 | | 09/25/32 | | 1 | | 0 | | 1 | |
Inter-American Development Bank | | 5.74 | | 03/14/07 | | 10/10/31 | | 0 | | 0 | | 0 | |
| | | | | | | |
| |
| |
| |
Total Direct Debt | | | | | | | | 2,280 | | 0 | | 2,280 | |
| | | | | | | |
| |
| |
| |
D-76
Table 3: Treasury Bonds and Eurobonds
(in millions of US$)
| | | | | | | | | | | | | | |
Foreign Currency-Denominated Bonds: | | | | | | | Of Which: |
| |
|
Treasury Bonds and Eurobonds Series | | Interest
Rate | | Issue
Date | | Final
Maturity | | Amount
Outstanding
as of Dec. 31, 2007 | | Internal
Debt (with
residents) | | Internal
Debt (with
public sector) | | External
Debt (with
non-residents) |
| |
| |
| |
| |
| |
| |
| |
|
Bonds due 2010 Fixed Rate | | 7.50% | | 05/29/03 | | 12/16/10 | | 20 | | 8 | | 1 | | 11 |
Bonds due 2012 Fixed Rate | | 7.63% | | 05/29/03 | | 03/05/12 | | 61 | | 41 | | 0 | | 21 |
Bonds due 2018 Fixed Rate | | 8.00% | | 05/29/03 | | 02/25/18 | | 41 | | 14 | | 0 | | 26 |
Bonds due 2019 Fixed Rate | | 7.50% | | 05/29/03 | | 03/23/19 | | 281 | | 90 | | 12 | | 179 |
Bonds due 2020 Fixed Rate | | 9.75% | | 05/29/03 | | 02/28/20 | | 22 | | 7 | | 3 | | 12 |
Bonds due 2011 Fixed Rate | | 4.00% | | 07/01/04 | | 11/30/11 | | 18 | | 10 | | 0 | | 7 |
Bonds due 2008 Floating Rate | | Libor + 1.75 | | 05/29/03 | | 12/21/08 | | 31 | | 35 | | 0 | | -4 |
Bonds due 2009 Floating Rate | | Libor + 1.5 | | 05/29/03 | | 11/27/09 | | 17 | | 16 | | 1 | | -1 |
Bonds due 2010 Floating Rate | | Libor + 1.5 | | 05/29/03 | | 09/29/10 | | 26 | | 26 | | 0 | | 0 |
Bonds due 2011 Floating Rate | | Libor + 1.5 | | 05/29/03 | | 08/20/11 | | 22 | | 13 | | 0 | | 8 |
Bonds due 2017 Floating Rate | | Libor + 1 | | 05/29/03 | | 06/30/17 | | 14 | | 16 | | 0 | | -2 |
Bonds due 2018 Floating Rate | | Libor + 2 | | 05/29/03 | | 03/24/18 | | 3 | | -1 | | 0 | | 4 |
Bonds due 2010 Incremental Rate | | Starting from 4%
+ 0.5% annual
until 2009
reaching 7% | | 05/29/03 | | 06/15/10 | | 127 | | 63 | | 2 | | 63 |
Bonds due 2013 Incremental Rate | | Starting from 4%
+ 0.5% annual
until 2009
reaching 7% | | 05/29/03 | | 05/15/13 | | 266 | | 221 | | 1 | | 45 |
Bonds due 2018 Incremental Rate | | Starting from 4%
+ 0.5% annual
until 2009
reaching 7% | | 05/29/03 | | 04/15/18 | | 193 | | 97 | | 4 | | 91 |
| | | | | | | | | | | | | | |
UR Bond | | 2.63% | | 06/01/97 | | 06/01/08 | | 2 | | 2 | | 0 | | 0 |
UI Bond | | 7.000% | | 11/06/02 | | 11/06/12 | | 1,652 | | 1,375 | | 278 | | -1 |
| | | | | | | | | | | | | | |
Zero-coupon bond | | 8.25% | | Vs 1999/2000 | | Vs 2014/2020 | | 2 | | 2 | | 0 | | 0 |
Global Bond 2008 | | 7.00% | | 04/06/98 | | 04/06/08 | | 4 | | 0 | | 0 | | 4 |
Global Bond 2009 | | 7.25% | | 05/04/99 | | 05/04/09 | | 4 | | 0 | | 0 | | 4 |
Global Bond 2010 | | 8.75% | | 06/22/00 | | 06/22/10 | | 2 | | 0 | | 0 | | 2 |
Global Bond 2027 | | 7.88% | | 07/15/97 | | 07/15/27 | | 23 | | 1 | | 0 | | 22 |
Global Bond 2012 | | 7.63% | | 11/21/01 | | 01/20/12 | | 2 | | 0 | | 0 | | 2 |
Global Bond 2009 | | 7.88% | | 03/25/02 | | 03/25/09 | | 1 | | 0 | | 0 | | 1 |
| | | | | | �� | | | | | | | | |
Eurobonds - Euros vto 2011 | | 7.00% | | 06/28/01 | | 06/28/11 | | 64 | | 0 | | 0 | | 64 |
| | | | | | | | | | | | | | |
Bonds due vto. 2017 9,25% | | 9.250% | | 05/17/05 | | 05/17/17 | | 500 | | 42 | | 6 | | 452 |
Mat.Ext.Bonds. 7 7/8% 18/11/08 | | 7.875% | | 05/29/03 | | 11/18/08 | | 48 | | 42 | | 0 | | 6 |
Mat.Ext. Bonds 7% 01/04/2013 | | 7.00% | | 05/29/03 | | 04/01/13 | | 39 | | 28 | | 0 | | 12 |
Mat Ext Bonds 7.875% 25/03/2014 | | 7.88% | | 05/29/03 | | 03/25/14 | | 7 | | 0 | | 0 | | 6 |
Mat Ext Bonds 7.25% 4/05//2014 | | 7.25% | | 05/29/03 | | 05/04/14 | | 18 | | 2 | | 0 | | 15 |
Mat Ext Bonds 8.75 22.06.2015 | | 8.75% | | 05/29/03 | | 06/22/15 | | 24 | | 2 | | 0 | | 22 |
Mat Ext Bonds 7.625% 20.01.2017 | | 7.63% | | 05/29/03 | | 01/20/17 | | 14 | | 3 | | 0 | | 12 |
Mat ext Bono 8.375 26/09/2011 | | 8.38% | | 05/29/03 | | 09/26/11 | | 30 | | 28 | | 0 | | 2 |
Benchmark 7.875 PIK 15.01.33 | | Max 7.875%;
initially 3.875%
increasing 1% p.a.
until 2007 | | 05/29/03 | | 01/15/33 | | 1,128 | | 494 | | 38 | | 597 |
Benchmark Bono 7.5% 15/03/2015 | | 7.50% | | 05/29/03 | | 03/15/15 | | 396 | | 88 | | 8 | | 300 |
Benchmark Bono 7.25% 15/02/2011 | | 7.25% | | 05/29/03 | | 02/15/11 | | 103 | | 21 | | 2 | | 80 |
Mat ext bond FRN vto 02.01.10 | | Libor + 0.875% | | 05/29/03 | | 01/02/10 | | 1 | | 0 | | 0 | | 1 |
Mat Ext. B. FRN vto. 2.7.2009 | | Libor + 1% | | 05/29/03 | | 07/02/09 | | 1 | | 1 | | 0 | | 0 |
Sec USD 200:0 UBS Global Bond 2022 | | 8.00% | | 11/18/05 | | 11/18/22 | | 1,805 | | 93 | | 16 | | 1,696 |
Global Bond 2036 | | 7.63% | | 03/21/06 | | 03/21/36 | | 1,286 | | 86 | | 1 | | 1,199 |
Yen Bond 3er serie vto 2011 | | 2.50% | | 05/29/03 | | 03/14/11 | | 185 | | 5 | | 0 | | 180 |
Global Bond Yens Serie A | | 2.23% | | 03/13/07 | | 03/13/17 | | 266 | | 0 | | 0 | | 266 |
| | | | | | | | | | | | | | |
Mat Ext Bonds 7% 26/09/2012 | | 7.00% | | 05/29/03 | | 09/26/12 | | 61 | | 22 | | 0 | | 39 |
Mat Ext Bonds 7% 28/06/2019 | | 7.00% | | 05/29/03 | | 06/28/19 | | 123 | | 1 | | 0 | | 123 |
Eurobonds due 2016 | | 6.875% | | 07/26/05 | | 01/19/16 | | 441 | | 72 | | 0 | | 369 |
D-77
Table 3: Treasury Bonds and Eurobonds
(in millions of US$)
| | | | | | | | | | | | | | | | | | | | | | |
Foreign Currency-Denominated Bonds: | | Of Which: | |
| |
| |
Treasury Bonds and Eurobonds Series | | Interest
Rate | | Issue
Date | | Final
Maturity | | Amount
Outstanding
as of Dec. 31,
2007 | | Internal
Debt (with
residents) | | Internal
Debt (with
public sector) | | External
Debt (with
non-residents) | |
| |
| |
| |
| |
| |
| |
| |
| |
Mat Ext Bonds 6.375 UF 15.3.16 | | | 6.38% | | | 05/29/03 | | | 03/15/16 | | | 3 | | | 3 | | | 0 | | | 0 | |
Global Indexed Peso Bonds 2nd series | | | 5.00% | | | 09/14/06 | | | 09/14/18 | | | 847 | | | 155 | | | 17 | | | 674 | |
Global Indexed Peso Bonds 3rd series | | | 4.25% | | | 04/03/07 | | | 09/14/27 | | | 595 | | | 47 | | | 3 | | | 546 | |
Global Indexed Peso Bonds 4th series | | | 3.70% | | | 06/26/07 | | | 06/26/37 | | | 570 | | | 100 | | | 0 | | | 470 | |
| | | | | | | | | | |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | | | | | | | |
Total Bonds (1) | | | | | | | | | | | | 11,388 | | | 3,370 | | | 393 | | | 7,625 | |
| | | | | | | | | | |
|
| |
|
| |
|
| |
|
| |
| |
|
(1) | Total includes certain immaterial unredeemed amounts outstanding under bonds with stated maturities prior to 1998. |
Source: Banco Central.
D-78
Table 4: Bills(1)
(in millions of US$)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | Of Which: | |
| | | | | | | | | | | | | |
| |
| | Interest
Rate | | Issue Date | | Final
Maturity | | Amount
Outstanding
as of
Dec. 31, 2007 | | Internal
Debt (with residents) | | Internal
Debt (with public
sector) | | External
Debt (with
non-resides) | |
| |
| |
| |
| |
| |
| |
| |
| |
Total Bills | | | Various | | | Various | | | Various | | US$ | 79 | | US$ | 70 | | US$ | 6 | | US$ | 3 | |
Total Treasury bills | | | | | | | | | | | US$ | 79 | | US$ | 70 | | US$ | 6 | | US$ | 3 | |
| | | | | | | | | | | | | | | | | | | | | | |
Banco Central bills | | | Various | | | Various | | | Various | | US$ | 2,397 | | US$ | 2,115 | | US$ | 283 | | US$ | 0 | |
| | | | | | | | | | |
|
| |
|
| |
|
| |
|
| |
| | | | | | | | | | | | | | | | | | | | | | |
Total Bills | | | | | | | | | | | US$ | 2,476 | | US$ | 2,185 | | US$ | 289 | | US$ | 3 | |
| | | | | | | | | | |
|
| |
|
| |
|
| |
|
| |
| |
|
(1) | Face value. |
| |
Source: Banco Central. |
D-79
Table 5: Guaranteed (Indirect) Debt
(in millions of US$)
| | | | | | | | | | | | | |
| | | | | | | | | | Of Which: | |
| | | | | | | | | |
| |
Lender | | Interest
Rate | | Issue
Date | | Final
Maturity | | Amount
Outstanding as of
Dec. 31. 2007 | | Internal
debt (with
residents) | | External debt
(with non-
residents) | |
| |
| |
| |
| |
| |
| |
| |
BCO NAL DESENV | | 2.43 | | 10/30/98 | | 10/30/12 | | 9 | | 0 | | 9 | |
EXIMBANK USA | | 5.48 | | 09/06/06 | | 09/22/14 | | 47 | | 0 | | 47 | |
Inter-American Development Bank | | 5.80 | | 11/04/02 | | 11/04/22 | | 1 | | 0 | | 1 | |
CREDIT N.-PARIS | | 2.00 | | 12/18/90 | | 12/31/28 | | 9 | | 0 | | 9 | |
F.I.D.A. | | 8.00 | | 05/20/93 | | 07/01/11 | | 3 | | 0 | | 3 | |
I.C.O. | | 1.50 | | 02/22/92 | | 10/06/22 | | 14 | | 0 | | 14 | |
Inter-American Development Bank | | 2.00 | | 09/04/75 | | 09/06/10 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 2.00 | | 09/04/75 | | 09/06/10 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 6.29 | | 12/27/93 | | 06/27/19 | | 31 | | 0 | | 31 | |
Inter-American Development Bank | | 6.29 | | 12/29/90 | | 01/06/16 | | 11 | | 0 | | 11 | |
Inter-American Development Bank | | 6.29 | | 03/18/96 | | 03/18/06 | | 35 | | 0 | | 35 | |
Inter-American Development Bank | | 2.00 | | 09/04/75 | | 09/06/10 | | 1 | | 0 | | 1 | |
Inter-American Development Bank | | 2.00 | | 05/20/86 | | 05/20/11 | | 1 | | 0 | | 1 | |
Inter-American Development Bank | | 2.00 | | 05/20/86 | | 05/20/11 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 2.00 | | 05/20/86 | | 05/20/11 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 2.00 | | 05/20/86 | | 05/20/11 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 2.00 | | 05/20/86 | | 05/20/11 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 2.00 | | 08/15/84 | | 08/15/14 | | 1 | | 0 | | 1 | |
Inter-American Development Bank | | 2.00 | | 08/15/84 | | 08/15/14 | | 1 | | 0 | | 1 | |
Inter-American Development Bank | | 2.00 | | 08/15/84 | | 08/15/14 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 2.00 | | 08/15/84 | | 08/15/14 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 2.00 | | 08/15/84 | | 08/15/14 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 2.00 | | 08/15/84 | | 08/15/14 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 2.00 | | 08/15/84 | | 08/15/14 | | 0 | | 0 | | 0 | |
Inter-American Development Bank | | 6.29 | | 12/29/90 | | 01/06/16 | | 3 | | 0 | | 3 | |
Inter-American Development Bank | | 6.29 | | 11/12/96 | | 11/12/21 | | 125 | | 0 | | 125 | |
MEDIOC.CENTRALE | | 1.75 | | 12/02/91 | | 12/02/11 | | 5 | | 0 | | 5 | |
THE OVER EC TOK | | 4.00 | | 10/09/89 | | 10/20/14 | | 3 | | 0 | | 3 | |
THE OVER EC TOK | | 4.00 | | 10/09/89 | | 10/20/14 | | 8 | | 0 | | 8 | |
The World Bank | | 5.83 | | 03/18/97 | | 10/15/10 | | 37 | | 0 | | 37 | |
The World Bank | | 0.00 | | 05/15/01 | | 08/15/15 | | 22 | | 0 | | 22 | |
BCO. SUDAMERIS | | 4.95 | | 12/30/00 | | 11/09/08 | | 1 | | 1 | | 0 | |
CITIBANK N.A. | | 4.95 | | 10/30/98 | | 05/09/12 | | 3 | | 3 | | 0 | |
Inter-American Development Bank | | 2.05 | | 11/21/03 | | 08/15/22 | | 2 | | 0 | | 2 | |
BANCO BILBAO VIZCAYA ARGENTARIA | | 0.00 | | 12/13/05 | | 01/13/08 | | 0 | | 0 | | 0 | |
CORPORACIÓN ANDINA DE FOMENTO | | 5.97 | | 10/01/07 | | 10/01/15 | | 28 | | 0 | | 28 | |
B.I.R.F. | | 4.92 | | 10/04/07 | | 04/15/22 | | 3 | | 0 | | 3 | |
| | | | | | | |
| |
| |
| |
Total Guaranteed Debt | | | | | | | | 406 | | 4 | | 402 | |
| | | | | | | |
| |
| |
| |
D-80
Table 6: Other External Debt
(in millions of US$)
| | | | |
| | Amount Outstanding
as of December 31,
2007 | |
| |
| |
Commercial Creditors | | US$ | 644 | |
Banco Central: Other External Debt | | | 39 | |
| |
|
| |
Total Other External Debt | | US$ | 683 | |
| |
|
| |
D-81
Table 7: Other Domestic Debt
(in millions of US$)
| | | | |
| | Amount Outstanding
as of December 31,
2007 | |
| |
| |
Deposits Net of Credits | | US$ | (245 | ) |
| |
|
| |
|
Non-financial Public Sector | | US$ | (796 | ) |
Credits | | | 260 | |
Deposits | | | (1,055 | ) |
Banco Central | | US$ | 550 | |
Credits | | | (22 | ) |
Deposits | | | 573 | |
| |
|
| |
| | | | |
Other Debt | | US$ | 14 | |
| |
|
| |
| | | | |
Total Other Domestic Debt | | US$ | (231 | ) |
| |
|
| |
D-82
