Uruguay lenders set for local currency boost with inclusion law

Uruguay lenders set for local currency boost with inclusion law

Bonds Corporate & Sovereign Strategy

Local currency deposits are likely to jump in Uruguayan banks later this year, as the country’s financial inclusion law comes into effect, Moody’s said. The new legislation, which requires payrolls to be paid through the banking system, is credit positive for Uruguay’s lenders because it will boost “much-needed” funding in pesos as well as growing the customer base, the agency said. Close to three-quarters of deposits at Uruguay’s banks are in dollars, and a lack of local currency has restricted

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