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LatinNews Daily - 12 April 2019

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In brief: Uruguay

* According to a report by international credit ratings agency, Moody's Investors Service, Uruguay’s next administration, which is due to take office on 1 March 2020, will inherit a complicated economic situation. The ratings agency believes that Uruguay’s government will fail to reach its fiscal deficit target of 2.5% of GDP in 2020. Moody’s warned that if weak economic growth continues and the country’s fiscal deficit does not stop increasing, a higher debt-to-GDP ratio may threaten Uruguay’s 'Baa2' credit profile. However, Moody’s recognised that mitigating factors, such as the government's broad liquidity buffers and maturity profile, could limit the effects of exchange rate volatility and higher interest rates caused by international financial conditions.