Swap Conversion Operation

May 18th, 2016. The Ministry of Economy and Finance, through its Debt Management Office, conducted a swap transaction to exchange two dollar-denominated loans with the World Bank, to Japanese Yens. The transaction was for the equivalent of USD 500 million and a tenor of 15 years (same amount and maturity of the loans).

After this operation, the interest on these loans changed from Libor-linked floating rate (currently 0.90% annually), to a fixed annual rate in JPY of -0.40% (negative 40 basis points). The operation has three main objectives. First, achieve greater diversification in the foreign-currency basket of the Central Government`s debt portfolio, improving the risk profile. Second, continue to increase the share fixed-interest rates, muting the impact of an eventual rise in interest rates in the United States. Finally, reduce expected debt-servicing costs, by taking advantage of the divergence in monetary policies between the US and Japan.


Sovereign Debt Management Unit

Ministry of Economy and Finance of Uruguay
Colonia 1089 3rd Floor CP 11100 Montevideo - debtinfo@mef.gub.uy

Última Actualización: 23/05/2024