MONTEVIDEO — International Monetary Fund Managing Director Kristalina Georgieva visited Uruguay on July 30, the first visit by the IMF’s top leader to the country in 15 years. During the two‑day visit, Georgieva lavished praise on Uruguay’s macroeconomic stability and institutional strengths, but also cautioned the South American nation that stability alone is not the end goal – faster growth must be pursued.
Speaking at a public dialogue in Montevideo alongside Uruguay’s Central Bank President Guillermo Tolosa, Georgieva highly commended the country’s achievements in macroeconomic stability, inflation control and institutional resilience. “Uruguay is a beautiful country. I didn’t come before because you were doing so well, while too many countries were not doing enough,” she said. “That stability is built on social consensus – and in a world increasingly marked by confrontation and polarisation, that is an extremely valuable asset.”
Uruguay repaid all its debts to the IMF in 2006 and has not sought any financing from the Fund for many years since. The country’s public debt stands at about 60% of GDP, and 98% of its electricity matrix comes from renewable sources. Georgieva specifically noted that Uruguay’s success in bringing inflation down to 4.5% and anchoring market expectations was “truly impressive.”
However, the IMF chief made it clear that stability should not become an excuse for complacency. “Stability is the country’s best advertisement, but you can’t put stability in the fridge – we do need growth,” she urged. She called on Uruguayan authorities to “preserve the country’s stability, but take more risks in a new world,” encouraging greater investment and expanded credit to drive economic growth.
Georgieva advised Uruguay’s central bank to maintain the 4.5% inflation target for the time being, with any downward adjustment delayed for at least two years. She also urged Uruguay to deepen the de‑dollarisation of its economy – currently about 70% of bank deposits are still held in foreign currency – and to reinforce the central bank’s independence. Drawing on her own country’s experience in Bulgaria, Georgieva said that this dependence on the dollar stems from the fear of past crises, and suggested incentivising local‑currency savings to change the situation.
On the regional front, Georgieva believes Uruguay is well placed to consolidate its role as a regional logistics hub. She called on Uruguay to strengthen cooperation with its neighbours, noting that the region “has a great deal of untapped potential.” She also mentioned that artificial intelligence, if used properly, could become a major lever for productivity gains.
Uruguay’s President Yamandú Orsi received Georgieva at the Executive Tower. Economy and Finance Minister Gabriel Oddone said the visit was an “invitation” for Uruguay – “to look forward, take more risks, and be bolder in both public policy management and the private sector.” Oddone also revealed that the IMF would use Uruguay’s experience in tax administration cooperation as a model to promote to other countries.
Georgieva had previously visited Argentina, and when speaking about the region she said she “truly hopes Latin America shifts into a higher gear.” (End)
Sources: EFE, Spanish‑language Xinhua, El País (Uruguay), El Observador (Uruguay), Infobae, La Nación (Paraguay)