URUGUAY: I.M.F. and U.S. AGREE TO EMERGENCY LOANS.(International Monetary Fund )

NotiSur - South American Political and Economic Affairs | August 9, 2002 | Copyright

In a marked reversal of earlier policy statements regarding bailouts, the US Treasury agreed to a US$1.5 billion bridge loan for Uruguay and encouraged additional funding from the International Monetary Fund (IMF) and other lenders.

The move came after increasing turmoil that forced Uruguay's finance minister to resign, the Banco Central de Uruguay (BCU) to declare a "banking holiday" to stop a run on deposits, and protests by angry citizens that included the worst looting in years.

On Aug. 4, the US announced it had approved the emergency loan to Uruguay, ...

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