The Inter-American Development Bank (IDB) announced the approval of a $9 million loan to Uruguay to support a program for the sustainable development of cluster and production chains and to make them more competitive.
The program will support competitively selected production chains and clusters to prepare competitiveness strengthening plans based on a comprehensive analysis of market conditions and business strategy.
This initiative will also cofinance with groups of firms projects identified as priorities in the plans and will finance actions to strengthen, structure and create synergies among the institutions that support the sectors. Four times a year, companies will be invited to submit applications for project cofinancing.
“Private firms competitiveness depends not only on macroeconomic, environmental and international market conditions, but also on company behavior and ability to cooperate with other firms and organizations and access effective corporate development services,” said IDB Team Leader Gabriel Casaburi. “The program's approach is to overcome problems of coordination between firms and organizations that limit company competitiveness, by organizing promotional instruments to address collective needs.”
“A country's economic growth is the result of the competitiveness of its goods-producing sector and promotion through clusters and production chains has proven an effective mechanism,” added Casaburi.
The program is consistent with the IDB strategy in conjunction with Uruguay of supporting government policies to achieve sustained growth and macroeconomic stability in a context of greater social equity.
The loan is for a 25-year period, with a five-year grace period, at a variable interest rate. The Development Projects Department of the Office of Planning and Budget of the Presidency will be the executing agency.
Inter-American Development Bank
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