65142

     Uruguay: Second Programmatic Public Sector, Competitiveness and Social Inclusion
               Development Policy Loan with a Deferred Drawdown Option

                                                 SUMMARY OF DISCUSSION

                                               Meeting of the Executive Directors

                                                               October 25, 2011


       The Executive Directors approved the Second Programmatic Public Sector,
Competitiveness and Social Inclusion Development Policy Loan with a Deferred Drawdown
Option (DPL-DDO) to the Oriental Republic of Uruguay in the amount of US$260 million on
the payment terms and conditions set out in the President’s Memorandum (R2011-0212/2).

         Directors expressed support for the DPL-DDO and endorsed its objectives, expressing
satisfaction with respect to the overall design of the program, and noticed that its three main
policy areas adequately support the government’s long term development strategy. While
Directors noted that Uruguay has achieved commendable progress in terms of macro-fiscal
stability over the past years, they stressed the need for further progress to sustain growth at high
levels and to advance on social inclusion and poverty. In this context, Directors found the focus
of the DPL-DDO appropriate, and agreed that the DDO feature would help protect reforms
supported by the current DPL series in times of growing uncertainties in global financial market
conditions.




                                                            
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  This summary is not an approved record.