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IDB Group Pledges $5 Billion to Reshape Uruguay’s Economic Landscape

Uruguay and the Inter-American Development Bank Group have unveiled a $5 billion roadmap for 2026–2030, targeting a structural overhaul of the nation's economy. President Ilan Goldfajn and President Yamandú Orsi confirmed the initiative will prioritize private-sector competitiveness, infrastructure modernization, and a significant strengthening of national public security systems.

IDB Group Pledges $5 Billion to Reshape Uruguay’s Economic Landscape

The strategy centers on boosting innovation, with $400 million earmarked for policy-based programs designed to help local businesses leverage the EU-Mercosur Agreement and OECD integration. Beyond trade, the IDB is collaborating with the Central Bank to broaden access to long-term capital, building on an existing portfolio of 75 active projects managed by the IDB Lab.

Public safety initiatives receive substantial backing, with $350 million committed to police training, criminal investigation capabilities, and prison reform. This includes an immediate $25 million operation under a larger $200 million credit line. Parallel to security, the bank is funding social welfare, specifically targeting child poverty reduction and educational outcomes.

Infrastructure development remains a primary pillar, featuring a $200 million push to modernize Montevideo’s metropolitan transit network. Further allocations include $70 million for housing, $51 million for water security, and $80 million to stabilize electricity grids. The bank intends to accelerate this activity rapidly, with a record $1.65 billion in financing projected for 2026 alone—a threefold increase over the previous year's approvals.

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