CAF okays US$980mn package for Uruguay
Friday, December 19th 2025 – 10:53 UTC
The package aligns with CAF’s evolution into a green bank for the region, Díaz-Granados explained
The Board of Directors of the Development Bank of Latin America and the Caribbean (CAF) has authorized a landmark US$980 million credit operation for Uruguay. This approval represents one of the largest single financial commitments in the organization’s history with the country, targeting a massive overhaul of public infrastructure, climate resilience, and social integration.
The financing is structured across four strategic pillars designed to bridge socioeconomic gaps and shield the national economy from external shocks by allocating funds to four main goals.
The Montevideo Metropolitan Area will receive US$300 million to establish a high-capacity, low-carbon transportation system. The project, which will benefit an estimated 1.86 million residents across Montevideo, Canelones, and San José, includes the creation of a new Metropolitan Transportation System Agency to coordinate efforts between national ministries and local governments.
The Más Barrio social cohesion program managed by the Social Development Ministry will get US$250million to focus on 21 high-vulnerability priority areas to integrate urban development with citizen security, directly benefiting approximately 70,000 people in its initial phase.
Another US$300 million for contingent emergency liquidity will create a flexible credit line for rapid response to debt management crises and climate disasters. Notably, US$150 million is specifically reserved for immediate disbursement following extreme weather events such as droughts or floods.
Last, the National Development Corporation (CND) will handle US$130 million to target infrastructure projects across all 19 departments (provinces), in a move to address the territorial north-south divide. According to CAF data, while 17% of the national population is considered vulnerable, these figures rise sharply in the country’s northern regions.
CAF Executive President Sergio Díaz-Granados described the approval as historic, noting that the package aligns with the bank’s evolution into a green bank for the region.
These projects are necessary instruments for building social cohesion and increasing resilience in the face of the climate crisis, the Colombian executive also pointed out.
