MARRAKECH, October 11, 2023 – World Bank Managing Director Anna Bjerde and Uruguay Minister of Economy and Finance Azucena Arbeleche today issued the following statement:
“We are excited to conclude negotiation of an innovative loan to Uruguay including the groundbreaking feature of a step-down in interest payments based on verifiable performance against climate targets. This could result in up to US$12.5 million in interest reduction if Uruguay reaches targets beyond its Paris Agreement commitments to lower the intensity of methane emissions from its livestock sector. Uruguay will be the first country to benefit from this feature and the World Bank will seek to replicate and scale this approach to incentivize countries to provide global public goods.
This innovation is aligned with the World Bank's Evolution Roadmap which seeks to create incentives for countries striving to integrate global challenges such as climate change mitigation into their development programs, as we work to end poverty on a livable planet.
This collaboration between Uruguay and the World Bank builds on a longstanding partnership that has produced replicable programs that not only benefit the country but also have ushered in innovative development solutions replicated in other member countries through analytical activities or loan projects.”
Contact:
In Montevideo: Valeria Bolla, vbolla@worldbank.org
