MIGA issued a $38 million guarantee toa shareholder loan by Banco Santander, S.A. of Spain to expand its branch operations in Uruguay. The MIGA guarantee covers the loan against the risks of transfer restriction and expropriation.
The loan will allow Banco Santander to expand its mortgage-based financing for the purchase and renovation of private housing and small and medium-size businesses in Uruguay. The project will also increase the maturity of mortgages from 10 to 15 years. As a result, the project will increase competition among mortgage loan providers and create incentives to improve efficiency and quality.
