Fonplata finds funding for coronavirus response

Fonplata finds funding for coronavirus response

Loans Debt Corporate & Sovereign Strategy Economy & Policy Coronavirus Uruguay Bolivia Brazil Argentina Paraguay Latin America

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Fonplata, the development bank for the Río de la Plata basin in South America, said it secured $130 million in financing from reserves of the Central Bank of Uruguay, or BCU, to fund its emergency lending plans during the coronavirus pandemic.

Fonplata has opened an emergency credit line to counteract the economic impact of the coronavirus in its member nations Argentina, Bolivia, Brazil, Paraguay and Uruguay.

In April, it provided $15 million to a loan program for 65,000 small businesses in Uruguay and also approved $53 million in loans to Argentina, including $25 million to provide meals to schoolchildren in the province of Buenos Aires and $15 million to build emergency hospitals.

Uruguay's Economy Minister Azucena Arbeleche said in late March that the country wanted to get $2.5 billion in credit from multilateral lenders to take on the coronavirus. The country has secured $125 million from the Inter-American Development Bank (IDB) and engaged the Japan Bank for International Cooperation (JBIC) to work on the sale of yen-denominated bonds.