Public Debt Ceiling Law
Law No. 17,947, enacted on January 8, 2006, as amended, constitutes the legal framework for public debt. Under this law, the government may issue market debt, provided that the annual change in the net outstanding debt of the consolidated sovereign entities (which include the central government, Banco Central del Uruguay, Banco de Seguros del Estado, Banco de Previsión Social and certain other national agencies) over the prior fiscal year, does not exceed the predetermined amount set forth.
On August 31st, 2020, the Executive Power submitted to Congress the five-year Budget Law Draft Bill that introduces a new debt authorization framework, establishing a binding level for the Central Government`s annual net indebtedness (Sections 635 and following). The proposed framework is currently being considerate by the Congress.