All restrictive insurance terms for export transactions with a credit duration of more than two years (medium and long-term credit) with Uruguay have been lifted by Belgium’s ONDD. From now on, insurance with no special requirements nor restrictions is possible. The ceiling for these transactions has been increased to €
300mn. Within the framework of the OECD Arrangement, the premium category for medium and long-term transactions remains unchanged (category 6 out of 7).
Shaken in 2002 by a severe financial crisis, the Uruguayan economy has developed ever since at a sustained pace, thanks to the vigour of its exports. Taking advantage of this favourable context, the authorities are now laying the groundwork for a longer-term strong growth by implementing sober budgetary and monetary policies. Thanks to these policies, the inflation rate is low and the deficits of the country are limited, both on its budgetary balance and on the current account of the balance of payments. These positive elements entail a strong rise in the international reserves and more and more sustainable debt levels, even if these remain high.
Moreover, Uruguay’s political stability, as well as the general consensus towards the current economic policies, should contribute to maintain these encouraging developments over the coming years.
ONDD resumes cover for medium and long-term transactions with Cape Verde in West Africa. The cover ceiling for Cape Verde amounts to €
40mn for these transactions while the premium category remains unchanged (category 7 out of 7).
Cape Verde has good economic prospects after having benefited from a sustained growth for several years. This growth is above all supported by the tourist sector and the income transfers from Cape Verdean expatriates. Even if the deficit of the current account results from considerable needs of imported goods given the absence of natural resources, the balance of payments will remain in surplus thanks in particular to the importance of international aid and foreign direct investments.
Moreover, despite a high public debt, the current budgetary and monetary discipline strengthens the conditions for a long-lasting growth in a context of political stability. The financial risk, which is moderate with a sustainable, gradually decreasing foreign debt situation, is limited by the exclusion of the debt owed by the growing offshore bank sector.