República Oriental del Uruguay - Institutional Investor Presentation April 2021
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República Oriental del Uruguay
Institutional Investor Presentation
April 2021
1
Key Credit Highlights
1 Effective response to the COVID-19 Pandemic in 2020; Massive Vaccination Plan
Launched in 2021 Amid Accelerated Virus Spread in the Country.
2 Gradual Economic Recovery, supported by Foreign Direct Investment and
Higher Commodity Prices, Facing Headwinds from Covid-19 Surge.
Fiscal Targets Met in 2020 under New Fiscal Rule; Continued Targeted
3
Support in 2021 for Vulnerable Firms and Households while Aiming for
Improved Structural Fiscal Balance.
Monetary Policies Focused on Bringing Down Inflation and Anchoring
4
Inflation Expectations within Target, under a new Monetary Policy
Framework.
5 Solid External Sector and Large International Reserve Buffers.
6 Government Forges Ahead with Structural and Market-Friendly Reforms,
including Social Security Reform and Energy Markets.
7 Debt Management Strategies Focused on De-Risking Sovereign Debt Portfolio
in a Cost-Efficient Way; Liquidity Buffers provide Financial Flexibility
8 Uruguay Remains One of the Top Global Performers on ESG Fundamentals;
Government is Committed to Environmentally-Sound Policies and Climate Action.
2
1 Effective response to the COVID-19 pandemic in 2020,
without imposing mandatory lockdown…
Uruguay implemented a steadfast COVID-19 containment strategy that allowed the country to limit
the virus spread and mitigate fatalities.
Total confirmed cases in 2020 (1) Management of Covid-19 Pandemic in Latam in 2020 (2)
(Per million people, as of December 31st, 2020) (Index, 100 = best performance)
70.000 90
ARG BOL BRL CHL COL
ECU MEX PAN PER URY 76
60.000
Uruguay ranked 12th
Worldwide
50.000
60
40.000
30.000
30
20.000
10.000
0
0
Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20
____________________
Note: Regional and country specific information is as aggregated or reported, as applicable. Each such country information may be calculated differently and aggregated by each
respective source using various methodologies. Accordingly, this comparison is for illustrative purposes only and we do not purport to assert that the above information is actually
comparable.
(1) Source: Our World in Data.
(2) Source: Lowy Institute, Australia. Based on data available through end-2020. The average of the rankings across six indicators (confirmed cases, confirmed deaths, confirmed cases
per million people, confirmed deaths per million people, confirmed cases as a proportion of tests and tests per thousand people) was normalized for each of the 98 countries to 3
produce a score between 0 (worst performing) and 100 (best performing) on any given day in the 36 weeks that followed their hundredth confirmed case of COVID-19.
1 …allowed for a comparatively smaller deterioration
of macroeconomic fundamentals in 2020.
Uruguay’s effective response to the COVID-19 outbreak coupled with political stability and a broad
social safety net, allowed it to maintain solid macroeconomic fundamentals.
Real GDP Contraction in 2020 in LatAm (1) Deterioration in Fiscal Balances in LatAm in 2020 (2)
(In %) (Change between 2019 and 2020 in fiscal deficit in % of GDP)
-2 7,8
8
7,3
6,9
-6
-5,9 6
4,6
4,3 4,4
-10
4
-14 1,7
2
0,6
-18
0
____________________
Note: Regional and country specific information is as aggregated or reported, as applicable. Each such country information may be calculated differently and aggregated by each respective
source using various methodologies. Accordingly, this comparison is for illustrative purposes only and we do not purport assert that the above information is actually comparable
.
(1) Source : Official National Statistics.
(2) Source: Fitch Sovereign Data Comparator, as of March 2021, except for Uruguay that corresponds to official fiscal outturns as reported by the Ministry of Economy and Finance. In all cases, 4
corresponds to the General Government.
1 Since early 2021, virus spread in the country has
accelerated; massive vaccination plan is launched.
Amid rising virus contagion, vaccination program is rapidly picking up pace: almost 25% of the total
population received at least one dose in the first month approx. after roll-out.
COVID Fatality Rate in Latam (1)
Total vaccinations in Latam (2)
(Cumulative deaths per million people, as of April 8th, 2021) (Cumulative doses in percent of total population, as of April 8th, 2021)
ARG BOL BRL CHL COL CHL ARG BOL BRL COL
1.600
ECU MEX PER PAN URY ECU MEX PER PAN URY
60 30
Chile (LHS): 59.6
Uruguay (RHS); 27.7
1.200 25
40 20
800
15
20 10
400
5
0 0 0
Mar-20 Jun-20 Sep-20 Dec-20 Apr-21
Mar-21 2-Jan-21 3-Feb-21 7-Mar-21 8-Apr-21
Vaccine Program Update as of April 8th, 2021 Vaccination Phase begins in Uruguay
• Total purchase of 5.25 million vaccine doses (Sinovac, Pfizer and Astrazeneca).
• Given expected shipment delivery of vaccines, if the current roll-out capacity is sustained (1% of the 3.4 million total
population receiving a dose every day, on average, six days a week), the government could have every willing adult
(18+ years old) vaccinated with two doses by early September 2021.
____________________
(1) Source: Our World in Data.
(2) Source: Our World in Data. This is counted as a single dose, and may not equal the total number of people vaccinated, depending on the specific dose regime (e.g. people receive multiple 5
doses).
2 The economic recovery is facing headwinds from
the recent Covid-19 outbreak and weak tourism season.
Rising COVID-19 cases and lower inbound tourism due to border closures and more stringent
mobility restrictions, dampened the momentum of economic recovery and moderated tax revenues.
Fuel Demand Tax Revenue Collection
(Rolling 7-day average, YoY change, in %) (YoY real change, in %)
40 First Covid-19 cases 10
confirmed on
March 13, 2020
20 5
0 0
-20 -5
-6,3
-40 -10
-60 -15
-80 -20
Jan-20 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jan-20 Jun-20 Nov-20 Feb-21
____________________
Source: Ministry of Economy and Finance of Uruguay 6
2 Amid signs of softening economic activity, other indicators
suggest more upside: (i) strengthening durable consumption…
Consumer confidence has improved and durable consumption is recovering; the number of
unemployment insurance beneficiaries has remained stable in a slowly-healing labour market.
Consumer Confidence Index (1) Unemployment Insurance and Employment Rate (3)
60 Nmber of beneficiaries of
Unemployment Employment rate, in % of
Insurance, in thousands working age population
Moderate
optimism 250 58
50
49,2
Moderate 200 56
pessimism
41,2
40
Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Feb-21
150 54
Car Sales (2)
Number of cars sold YoY change, in % (RHS)
6.000 100
100 52
60
4.000
20
50 50
2.000
-20
0 -60 0 48
Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Mar-21
Jan-20 May-20 Sep-20 Jan-21Feb-21
____________________
(1) Source: SURA Chair of Economic Confidence - Catholic University of Uruguay and Equipos Consultores Consulting firm.
(2) Source: Uruguayan Car Trade Association. 7
(3) Source: Social Security Bank of Uruguay ands National Institute of Statistics.
2 (ii) ramp up in foreign direct investment that is supporting the
construction sector…
The largest-ever private investment project is on track, and is already showing up on FDI inflows.
UPM’s Pulp Mill Key Components of Net Capital Inflows (1)
(Rolling 4-quarters, in % of GDP )
UPM will invest a total of US$ 3 billion (5.5%
of GDP) to build a 2.1 million-tonne
greenfield eucalyptus pulp mill in central 8 Portfolio Other Investments FDI
Uruguay
Proceeding according to planned schedule.
4
More than 3,000 people are currently
working at the construction site.
Central Railway Project 0
US$ 1 billion investment in a Central Railway
that will run from the city of Paso de los Toros
to the port of Montevideo (273 km long) -4
Public-Private-Partnership (PPP) modality.
-8
2016Q4 2017Q4 2018Q4 2019Q4 2020Q4
____________________
(2) Source: Central Bank of Uruguay. “Others” includes Other Investments and Financial Derivatives from the Financial Account of the Balance of Payments. Changes in Central Bank reserve
assets are not included. 8
2 … and (iii) higher commodity prices and export demand of
goods that are lifting the agricultural sector.
Tailwinds coming from higher commodities prices and export demand from China, although
increasing oil prices has tempered improvement in terms of trade.
Export Value of Goods (1)
Soybean Prices (2)
(YoY change, in %) (US$/ton)
550 520
60 55,1
Exports to China
450
Total Exports
40
33,5 350
20
250
Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Mar-21
0
Milk Powder (3)
(US$/ton)
4.500
-20 4.224
4.000
-40
3.500
-60 3.000
Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Mar-21
____________________ 2.500
(1) Source: Uruguay XXI. Includes exports from Free Trade Zones.. Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Mar-21
(2) Source: Bloomberg.
(3) Source: National Institute of Milk of Uruguay 93 Fiscal targets met in 2020 on the back of disciplined
policies and new fiscal framework…
The government honored its pledge to rationalize fiscal accounts by restraining discretionary
expenditure, while allocating resources to contain Covid-19 impact on households and firms.
Central Government Fiscal Balance (1)
(In % of GDP))
2016 2017 2018 2019 2020
-1
The Government met the
2020 target set in the
Budget Law, even
accounting for re-basing of
GDP (using previous
-3 national accounts
estimates, which implies a
lower nominal GDP, the
fiscal balance observed
-4,0 would have been -6.3% of
GDP, and the fiscal target
-5 Primary Balance was set at -6.6%).
Interest
-5,7
Overall Balance
-7
____________________
Source: Central Bank of Uruguay; Ministry of Economy and Finance of Uruguay.
(1) Does not Include extraordinary inflows to the Social Security Trust. Fund.
103 … and the government met the three pillars of the
new fiscal rule, restoring fiscal credibility.
Austerity measures based on more efficient discretionary spending, restrictions on public sector hiring
and spending oversight allowed to meet all three pillars of the newly-adopted fiscal rule.
Structural balance target,
Cap on real growth in Binding maximum level of
to account for business
primary expenditure in line annual net indebtedness in
cycle fluctuations and one-
with potential real absolute dollar amount.
off/temporary spending
economic growth
and revenue items
Headline and Structural Balance Primary Spending Net Indebtedness in 2020
(In % of GDP) (Annual real variation, in %) (US$ mm)
0 4
(1) Gross Borrowing
5,887
-1 (Bonds + Loans)
3
-2 (2) Amortizations
Fiscal rule cap (Bonds + Loans) 2,194
-3 2
(3) Accumulated Financial
-4 573
-4.1 Assets
1
Headline
-5 0,4
Structural Net Indebtedness
3,120
= (1) - (2) - (3)
-6 0
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
The target for the structural fiscal The cap for real expenditure Legal limit on net indebtedness
balance in 2020 was set at -4.4% growth in 2020 was set at 2.3% was set at US$ 3,500 million
____________________
Source: Central Bank of Uruguay; Ministry of Economy and Finance of Uruguay. 113 In 2021, continued targeted measures to mitigate Covid-19
fallout on households and firms, coupled with incentives to
promote private investment and formal employment...
Continue to protect viable firms and vulnerable households from the Covid-19, while promoting
private investment through tax incentives.
Income support and tax relief for households and New tax breaks for big-ticket construction projects
SMEs and social housing
• Direct income transfers, expanded Foreign investors are granted the same
unemployment and health insurance and tax incentives as local investors: there is no tax
deferrals to protect household income and discrimination or restrictions for transferring
human capital. profits abroad.
• Targeted tax relief and exemptions to Recent changes to the General Investment
mandatory contributions to preserve the Promotion Regime (COMAP) providing more
financial health of micro, small and medium- tax incentives encouraging employment
sized enterprises (SMEs), to ensure functioning creation (housing, offices and urbanization
payment systems and supply chains between construction) and clean technologies.
producers, suppliers, intermediaries and Investment projects presented under COMAP regime
creditors. (Cummulative)
2.000 Total puported investment 1.600
Loan guarantees and temporary regulatory (in mill. US$)
forbearance for hardest-hit sectors 1.600 Number of projects (RHS) 1.200
• Sovereign-guaranteed lending programs to
1.200
leverage banking system loans to SMEs.
800
800
• Central Bank easing of bank regulations and 400
400
temporary forbearance on loan repayments
for companies most affected by the 0 0
pandemia.
____________________
Source: Ministry of Economy and Finance of Uruguay. Jan-19 May-19 Sep-19 Jan-20 May-20 Sep-20 Jan-21
123 … while targeting an improvement in the structural
fiscal balance.
Even accounting for additional temporary measures to support households and firms coping with COVID-
19, the government aims to shore up underlying public finances in 2021 to stabilize debt burden.
Central Government Fiscal Balance (1)
(In % of GDP)
2016 2017 2018 2019 2020 2021*
-1
Central Government
deficit is currently
-3 projected at 4.1% of
GDP in 2021, given a
projected real GDP
-4,0
-4.1 growth of 3.5%.
Interest
-5 Projections for 2021
Primary are under revision, in
Balance -5,7
light of recent Covid-
Overall Balance 19 developments.
-7
____________________
Source: Central Bank of Uruguay; Ministry of Economy and Finance of Uruguay.
(1) Does not include extraordinary inflows to the Social Security Trust Fund 13
(*) Projection, as of 8th of February, 2021.4 Monetary policies focused on bringing down inflation and
anchoring inflation expectations within target.
Monetary policy focused on anchoring inflation expectations.
1
Key focus is to bring inflation structurally down and anchor inflation
Commitment to expectations within the target band, under a floating exchange rate regime.
Lower Inflation
2 Short-term
New monetary policy framework under inflation targeting regime.
Interest Rate as
new Policy Improves market signals and allows for fine-tuning of monetary policy at
Instrument higher frequency.
3 Enhanced Higher frequency in Monetary Policy Committee (MPC) meetings, published
Transparency minutes of MPC, relaunched inflation survey, among others.
in Publication of Central Bank´s inflation projections and survey of firms´ inflation
Communication expectations.
4 To respond to the current Covid-19 health emergency, monetary policy has
Expansionary
geared into expansionary mode. To anchor medium term inflation
Policies in the
expectations, the Central Bank signaled it will switch to tighter monetary
Short Term
policy once the pandemic eases.
5 Coherence between fiscal discipline, disinflation strategy and wage policies:
Consistent monetary authority’s commitment to break inflation expectations inertia is
Policy Mix consistent with new wage-setting guidelines for the private sector prioritizing
employment creation and consolidation in structural fiscal balance.
____________________ 14
Source: Central Bank of Uruguay.4 Inflation is projected to continue its downward
trend, and revert within the target band in 2021.
Decelerating inflation consistent with new wage-setting guidelines for the private sector prioritizing
employment creation, and consolidation in structural fiscal balance.
Headline and Core Inflation Central Bank´s Projected Inflation Path (1)
(YoY, in %) (YoY, in %)
12
12
Headline inflation
Core inflation
10 10
Inflation expectation
8,3 survey (2)
8 8,1 8
7,1
6,75
6 6 6,3
5,2
4 4
2 2
Mar-19 Sep-19 Mar-20 Sep-20 Mar-21 Mar.-19 Mar.-20 Mar.-21 Mar.-22
Dec-21* Dec.-22*
____________________
Source: National Institute of Statistics and Central Bank of Uruguay.
(1) Quarterly forecasts of the baseline scemario of the Central Bank as of March 2021 (based on COPOM minutes).
(2) Median expectation according to Central Bank´s market survey as of March 2021.
(*) Central Bank projections as of March 2021. 154
The Central Bank has intervened on both sides of the forex market
only to smooth out volatility, in an otherwise
floating exchange rate regime.
The multilateral real effective exchange rate is estimated to be broadly in line with fundamentals.
Nominal Exchange Rate (1) Currency Performance vs USD (3)
(pesos per dollar, as of April 8th, 2021) (% change in nominal exchange rate YTD, as of April 8th, 2021)
48 Argentine Peso
Turkish Lira
44 43.9 Brazilian Real
Colombian Peso
Russian Ruble
40
3,7 Uruguayan Peso
Indonesian Rupiah
36 Indian Rupee
Mexican Peso
Chinese Renminbi
32
Peruvian Sol
Apreciation Depreciation Chilean Peso
28
Mar-18 Mar-19 Mar-20 Apr-21 -2 0 2 4 6 8 10 12
Nominal Exchange Volatility in Latam (2) Real Effective Exchange Rates of Uruguay vis-à-vis Other
(Quarterly average of absolute value of daily percent changes) Regions or Countries (4)
(Index base 100 = January 2017)
BRL CLP COP PEN MXN UYU
140
1,6 Real
Rest of the World
Depreciation
120
1,2
Overall
100
0,8
Real Argentina
0,4 80
Apreciation
Brazil
0,0 60
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 Jan-17 Nov-17 Sep-18 Jul-19 May-20 Feb-21
____________________
(1) Source: Central Bank of Uruguay | (2) Source: ECLAC, based on Bloomberg. | (3) Bloomberg; (*) As of February 19th, 2020 | (4) Source: Central Bank of Uruguay 165 Solid external sector and large international reserves.
Mild deterioration in current account balance, on the back of lower service exports and higher
foreign dividend payments; sizable international reserves provide large external buffer.
Current Account Balance of Uruguay (1) International Reserves in Latam (2)
(Rolling 4-quarters, in % of GDP ) (In % of GDP, as of end-2020)
2,0 40
1,5
30,3
30
1,0
0,5 20
0,0
10
-0,5
-0,6
-1,0 0
2016Q4 2017Q4 2018Q4 2019Q4 2020Q4 PER URY BRL COL MEX PAN CHL ARG
____________________
(1) Source: Central Bank of Uruguay.
(2) Source: Official National Statistics and International Monetary Fund. Note: Regional and country specific information is as aggregated or reported, as applicable. Each such country
information may be calculated differently and aggregated by each respective source using various methodologies. Accordingly, this comparison is for illustrative purposes only and 17
we do not purport assert that the above information is actually comparable.6 Despite the pandemic, Government forges ahead with
structural and market-friendly reforms.
Government moving forward with an ambitious agenda of fiscal and structural reforms
backed by political majority in Congress.
Covid-19 Solidarity Fund Urgent Consideration Law 2020-2024 Budget Law
Approved on April 8th, Approved on July 9th, Approved on
2020 2020 December 18th, 2020.
Voted unanimously by Changes in the tax code
all parties, to be for small businesses. Implementation of new
managed by the fiscal institutionality.
Executive branch. Draft of new fiscal
framework. New governance for
Fund earmarks the public enterprises:
budgetary resources to Changes in the performance targets
address the regulatory framework and accountability.
emergency, keeping for energy markets
tabs of the Covid- Environmental and
related expenditures Commission of experts of ESG-focused policies
and where and how the Pension Reform (Helsinski Principles).
the money is spent. submitted the diagnosis
on March 23rd 2021 and
has 90 days onwards to
present a
comprehensive reform
____________________
to Congress. 18
Source: Ministry of Economy and Finance of Uruguay.7 Proactive sovereign debt management strategies:
developing local currency markets and de-risking debt portfolio.
Improved debt profile through liability management strategies, extending average maturity,
smoothing maturity profile and reducing borrowing costs.
Currency and Maturity Composition of Debt Cost of Outstanding Debt in Local Currency
(As of end-period) (Weighted average interest rate on stock of debt, by type of currency,
in %)
Debt in Local Currency (% of total)
CPI-indexed in Pesos
Average Time to Maturity (in years, RHS) 15 5,5 14
Nominal fixed rate in Pesos (RHS)
60 13
5,1
13,5 13
45,5 12
4,7
40
11 11
4,3
10
20
9 9,6
3,9
9
3,6
0 7 3,5 8
2005 2007 2009 2011 2013 2015 2017 2019 2020 2005 2007 2009 2011 2013 2015 2017 2019 2020
____________________
Source: Ministry of Economy and Finance of Uruguay. 197 Central Government’s Funding Plan for 2021.
Cornerstones of debt management strategy: deepening local currency funding and
cost-efficient liability management operations.
Financing Needs and Funding Sources in 2021
(US$ mm, projections)
FINANCING NEEDS 4,335
Primary Deficit (1) 831
Interests Payments (2) 1,546 Continue to increase
local currency funding
Amortizations of Bonds and Loans (3) 1,534
in both domestic and
Accumulation of Financial Assets 423 international markets,
Liquid Assets 398 while developing
secondary markets
Other Financial Assets 25 (liquidity, depth and
points in the curve).
FUNDING SOURCES 4,335
Loan Disbursement from Multilaterals 550 Figures are under
revision, in light of
Total Issuance of Market Debt (4) 3,650 recent Covid-19
Others (net) (5) 135 developments.
____________________
Source: Ministry of Economy and Finance of Uruguay.
(1) Excludes extraordinary transfers to the public Social Security Trust Fund (SSTF).
(2) Includes interests payments to the SSTF on its holdings of Central Government debt.
(3) For 2021, includes the obligations coming due on a contractual basis and bonds repurchased and early redeemed through January 31st, 2021.
(4) Includes bonds issued domestically and in international markets.
(5) Includes exchange rate and market price valuation effects. 207 Large liquidity buffers and precautionary credit lines of
the Central Government provide financial backstops.
Conservative pre-financing policy afford financial flexibility.
Liquidity Buffers of the Government and Short-Term Debt Service Obligations (1)
(In US$ millions, as of end-February 2021)
4.000
Foreign Currency
Available precautionary credit
Local Currency lines with multilaterals totalize
USD 1.7 billion:
3.000
• Corporación Andina de
Credit Lines Fomento (US$ 750 million);
with
Multilaterals • World Bank (US$ 280
million)
2.000
• Fondo Latinoamericano de
Reservas (US$ 665 million)
1.000 Liquid
Assets
0
Liquidity buffer Debt service obligations
over the next 12 months
____________________
(1) Debt service includes amortization plus interest payments.
Source: Debt Management Unit, Ministry of Economy and Finance of Uruguay.
217 Sovereign credit spread remains subdued and clustered
among higher-rated investment grade peers.
Uruguay’s sovereign credit ratings (1) Sovereign Risk Premia (2)
(As of April 8th, 2021) (EMBI spread in bps, as of April 8th, 2021)
14
600 585
Baa2/BBB
13
/BBB
500 487
12 Investment Grade
Baa3/BBB-
/BBB (low)
400
11
347
10 300
269
231
9 213
200
156 149
8
121
100
7
6 0
Moody's R&I Fitch
Outlook: (Stable) (Stable) (Positive) (Stable) (Negative)
____________________
(1) Source: Moody’s, S&P, R&I, DBRS-Morningstar and Fitch.
(2) Source : Bloomberg,. 228
20
40
60
80
100
0
Slovakia
Uruguay
Lithuania
Croatia
Barbados
Poland
Hungary
Costa Rica
____________________
Jamaica
Romania
Panama
Suriname
Ghana
Argentina
Armenia
Oman
UAE
Uruguay (#2)
Paraguay
Mongolia
Chile
Namibia
Belarus
South Africa
Senegal
Peru
Mexico
Morocco
Trinidad And…
Brazil
Sri Lanka
Belize
Bolivia
fundamentals.
Qatar
Emerging Markets´ ESG Score
Philippines
Kazakhstan
El Salvador
(1)
Indonesia
Colombia
Ukraine
Ecuador
Saudi Arabia
Russia
Serbia
Dominican…
Jordan
Cote D'Ivoire
Azerbaijan
Vietnam
Kuwait
China
Gabon
Turkey
Malaysia
Kenya
Guatemala
Tajikistan
Egypt
Bahrain
(Index, 100 = best performance; as of end-March, 2021)
Mozambique
Zambia
Papua New…
Uzbekistan
Lebanon
Honduras
50
-350
-250
-150
-50
150
250
64 countries
(1) Source: J.P. Morgan Chase & Co. using data from RepRisk, Sustainalytics and Climate Bonds Initiative .
Uruguay
Oman
Panama
UAE
Romania
Ghana
Poland
Hungary
Argentina
Saudi Arabia
Qatar
Uruguay
Paraguay
Jamaica
Colombia
Costa Rica
Philippines
Dominican Republic
Croatia
Chile
Kazakhstan
Brazil
Ukraine
Lithuania
Slovakia
to ESG-Adjusted EMBI (1)
Sri Lanka
Ecuador
El Salvador
Russia
Armenia
Morocco
Mongolia
may not be copied, used, or distributed without J.P. Morgan’s prior written approval. Copyright 2021, J.P. Morgan Chase & Co. All rights reserved.”
Belarus
Trinidad And Tobago
Senegal
Barbados
(In basis points; as of end-March, 2021)
Bolivia
Suriname
Serbia
Uruguay is one of the top global performers on ESG
Namibia
Belize
Peru
Tajikistan
Papua New Guinea
Mozambique
Vietnam
Uzbekistan
Zambia
Honduras
Gabon
Lebanon
Cote D'Ivoire
South Africa
Kuwait
Jordan
Guatemala
Kenya
Indonesia
Bahrain
Egypt
Azerbaijan
Disclaimer: “Information has been obtained from sources believed to be reliable but J.P. Morgan does not warrant its completeness or accuracy. The Index is used with permission. The Index
Turkey
Malaysia
Weight change when moving from Conventional EMBI
Mexico
23
China8 Uruguay is a bastion of institutional and political stability
in LatAm…
Unlike regional peers, Uruguay’s presidential elections are not until 2024, creating favorable
conditions to implement policies.
Political Stability and Democracy (1) Adherence to the Rule of Law (2)
(Percentile rank) (Numerical score out of 1)
100 0,8
“Full Democracies” 0,67
80 0,58
0,6 0,52 0,52
61 0,50 0,50 0,49
56 0,44
60
47 43 0,38
42 0,4
38 37
40 32
26
18 0,2
20
0 0,0
URU CHL PAN ARG ECU PRY BOL PER BRA MEX COL URY CHL ARG PAN BRA COL PER ECU MEX BOL
Civil Unrest (3) Corruption Perception (4)
(Index out of 10) (Rank)
180
10
8
120
6
4
60
2
0 0
CHL MEX COL PRY ECU PER BRA ARG PAN URY PRY BOL MEX PAN BRA PER COL ECU ARG CHL URY
____________________
Note: Regional and country specific information is as aggregated or reported, as applicable. Each such country information may be calculated differently and aggregated by each
respective source using various methodologies. Accordingly, this comparison is for illustrative purposes only and we do not purport assert that the above information is actually
comparable.
(1) Source: Worldwide Governance Indicators, World Bank (2019) and The Economist Intelligence Unit (2020).
(2) Source: World Justice Project (2020).
(3) Source: Verisk Maplecroft (first quarter of 2020).
24
(4) Source: Transparency International (2020).8 … and remains at the forefront of environmentally-friendly
policies, with energy matrix based on renewable resources.
Rapid decarbonization of electricity system and plan for robust mitigation measures
across all emission-intensive sectors.
Ranked #1 in :
• Energy Transition Index among Emerging and Developing countries (1)
• MSCI Environmental Pillar Index among all countries in the world (2)
Electricity Generation by Source (3) Electricity Generation from Wind Energy (3)
(% of total, 2020) (% of total)
Hydro 50
6% 30%
40
20% Wind
30
Solar
3% 20
Biomass
10
Fossil Fuel
41%
0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
____________________
(1) Source: World Economic Forum, 2020.
(2) Source: MSCI
(3) Source: National Energetic Preliminar Balance 2020, Ministry of Industry, Energy and Mining. 258 The new administration is committed to climate action.
The goal is to make economic growth consistent with a pathway towards low greenhouse gas
emissions and climate-resilient economy, through macroeconomic, fiscal and financial policies.
• Creation of the Ministry of Environment (July, 2020).
• The Government joins:
o The Coalition of Finance Ministers for Climate Action
(October, 2020).
o The Network of Central Banks for Greening the Financial System
(November, 2020).
• The Helsinski Principles were explicitly incorporated in the 2020-2024
Budget Law, putting climate resilience at the center of the planning and
design of economic policies and fiscal management (December, 2020).
• The Ministry of Industry and Energy and the Ministry of Finance launch
the national road-map for green hydrogen production, with the support
of the United Nations Joint Fund for Sustainable Development Goals
(April 2021).
26República Oriental
del Uruguay
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