Investor Presentaiton
Biding Time: Government's external financing strategy since
the onset of the Covid-19 global disruption
In the wake of the global pandemic shock, market conditions in
March-April 2020 became extremely volatile and rates shoot up.
As a first response, the government relied on multilateral financing
to shore up liquidity buffers by rapidly disbursing pre-arranged
credit lines. This access to contingency financing provided large-
scale resources with lower borrowing costs and no execution risk,
allowing for biding time before returning to market.
As international markets stabilized, the Government spotted a
chance in late June 2020 and issued global bonds in both dollars.
and pesos, at favourable terms (the dollar rate was the lowest ever
achieved by Uruguay in an international dollar issuance).
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