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Depto de la Tesorería: Declaración del Secretario Paul
O'NeillDepto de la Tesorería: Declaración del Secretario
Paul O'Neill
STATEMENT
OF SECRETARY PAUL O'NEILL
Department of the Treasury
FROM THE OFFICE OF PUBLIC AFFAIRS
August 4, 2002
PO-3322
The United States Government strongly supports the recommendation
to
advance $1.5bn and to increase to a total of $3.8bn financing for
Uruguay
from the IMF, World Bank, and Inter-American Development Bank. We
are
confident that this enhanced program will help Uruguay address the
intense
external pressures it has faced in recent months. This confidence
stems
from the extraordinary actions and commitments by the Uruguayan
authorities to address these pressures.
In order to provide rapid financing to the Uruguayan government in
support
of the banking system, the United States government has agreed to
provide
up to $1.5 billion in short-term bridge financing from the Exchange
Stabilization Fund (ESF) to Uruguay's central bank during the brief
period
until international financial institution loans are disbursed. This
is
consistent with past use of the ESF.
100% of all dollar-denominated sight and savings deposits in both
public
and private domestic banks will be fully backed with the help of these
new
funds. It is essential for the Uruguayan people and business community
to
have access to these deposits to preserve the payments system in the
economy.
For some time, Uruguay has effectively implemented sound economic
policies
and embraced free markets, liberalizing trade and maintaining low
inflation. President Batlle's administration has made courageous
commitments to ensure that Uruguay remains a strong financial center.
These commitments include the difficult but necessary steps of closing
unsustainable banks and strengthening the supervisory and regulatory
framework and bank management in the remaining financial institutions.
Uruguay's approach to bank reform should encourage confidence of
depositors in the financial system. Foreign banks have played an important
role in the banking system, and we expect that role to continue.
A government that puts in place and follows through on such strong
economic policies merits the consistent support of the international
financial institutions and the United States.
I look forward to meeting with President Battle
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