Moody’s expressed on its Twitter account that in the referendum in Uruguay the “No” was imposed on the proposal to annul 135 articles of the LUC, which points to the “continuity” in the policies promoted by the Lacalle Pou government, in particularly those corresponding to the new framework of the fiscal rule, which is a “key factor for the sovereign credit perspective”.
Social security reform
In this context, Renzo Merino, Senior Analyst Vice President of Moody’s Investors Service, said that the referendum “confirms the institutional strength of Uruguay.”
For this reason, Moody’s expects the process of “fiscal consolidation” to continue, and that “spaces will be opened for the authorities to advance in the reform of the pension system, which would contribute to strengthening the credit profile”.
