Uruguay anticipates 25,000 displaced by El Niño, announces $750 million in contingent credit

Uruguay's government is preparing for the potential impact of the El Niño climate phenomenon, forecasting that as many as 25,000 people could be displaced. To mitigate the effects of natural disasters associated with El Niño, the administration has secured contingent credits amounting to $750 million from the Inter-American Development Bank (IDB) and the Development Bank of Latin America and the Caribbean (CAF).

Of this total, $300 million is allocated for the current year. The announcement came after a cabinet meeting where the El Niño preparations were discussed alongside other key government priorities. The government stressed the importance of these contingency funds to address potential emergencies and provide necessary aid.

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For the Executive Branch, the hope remains intact that agreements will be reached in Parliament to allow Uruguay to have a Rendición de Cuentas.

In addition to climate concerns, the cabinet meeting also focused on the ongoing efforts to pass the national budget. The Secretary of the Presidency, Alejandro Sánchez, highlighted the administration's hope for parliamentary approval, underscoring that the budget's passage is crucial for securing resources to combat child poverty and enhance security by creating 300 new police positions. He acknowledged the existence of alternative mechanisms to secure funds if the budget fails, but noted that creating new public sector roles would be blocked without it.

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The government has managed to establish contingent credits with international organizations totaling U$S 750 million to address the situation of natural disasters that may be caused by the occurrence of El Niño.