Uruguay will receive US$15 million from FONPLATA to assist micro and small enterprises affected by the COVID-19
The Development Bank approved a US$ 15 million loan aimed at alleviating the transitory impacts of the health emergency on micro and small enterprises in Uruguay. The fund will be executed by the National Development Agency (ANDE) and seeks to support the most vulnerable entrepreneurs in Uruguay's business sector.
The COVID-19 emergency line of credit granted by FONPLATA will facilitate the launching of the first phase of the financial support program for micro and small enterprises, which represent a high percentage of Uruguay's business sector. This first phase will be complemented by a second operation that will ensure its short-term sustainability.
ANDE will manage the main support instruments for micro, small and medium enterprises (MSMEs), while implementing the necessary financial mechanisms and communication channels to understand and to meet the needs of the sector. It is estimated that this measure will benefit about 65,000 micro and small entrepreneurs.
This support from FONPLATA was approved and executed in the shortest time possible, in accordance with the priority given by the Uruguayan government to this matter, supplementing the measures taken by the government for the same industry to cushion the current downturn caused by the pandemic.
Additionally, this operation provides ANDE with a financial mechanism to facilitate long-term credit programs, designed to provide convenient and supplementary credit access to micro and small enterprises, which are part of the business sector most affected by the emergency.
FONPLATA, formed by Argentina, Bolivia, Brazil, Paraguay, and Uruguay, has also approved initiatives to address the emergency caused by the COVID-19 pandemic in the different member countries.
Thus, FONPLATA – Development Bank supports the efforts being made to face the socioeconomic effects of coronavirus in the region.