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Investor Presentaiton

3 ...and all three pillars of the new fiscal rule were met last year, despite rigid government spending structure. Austerity measures based on more efficient discretionary spending and spending oversight allowed to meet all three pillars of the newly-adopted fiscal rule Structural balance target, to account for business cycle fluctuations and one- off/temporary spending and revenue items Headline (1) and Structural Balance (2) (In % of GDP) Cap on real growth in primary expenditure in line with potential real economic growth Primary Spending (Annual real variation, in %) Binding maximum level of annual net indebtedness in absolute dollar amount Net Indebtedness in 2020 (US$ mm) -1 N 3 3 2 -4 -4.3 1 Headline -5 Structural -6 (1) Gross Borrowing 5,891 (Bonds Loans) (2) Amortizations Fiscal rule cap (Bonds + Loans) 2,205 (3) Accumulated Financial Assets 574 0.6 Net Indebtedness - (1) (2) (3) 3,113 Legal limit on net indebtedness was set at US$ 3,500 million 2016 2017 2018 2019 2020 The target for the structural fiscal balance in 2020 was set at -4.4% (1) Does not Include extraordinary inflows to the Social Security Trust. Fund. 2016 2017 2018 2019 2020 The cap for real expenditure growth in 2020 was set at 2.3% (2) The Structural Balance is the fiscal balance that accounts for business cycle fluctuations and one-off/temporary spending and revenue items. Source: Ministry of Economy and Finance of Uruguay. 22
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