On March 3, 2016, MIGA issued a guarantee of $439.3 million covering equity investments and shareholder loans by Banco Santander S.A. in its subsidiary in Uruguay, Banco Santander S.A. (Uruguay). The mandatory reserves coverage is for a period of up to 10 years.

Madrid-based Banco Santander is one of the largest global financial institutions in the world in terms of market capitalization with retail and commercial operations in countries across Europe, Latin America, and North America. Its subsidiary banks abroad are required to maintain reserves at the central banks in their respective jurisdictions, based on the volume of customer deposits that these subsidiaries have.                                           

MIGA’s guarantee will support Banco Santander – Latin America’s widest international franchise and the largest private sector bank with systemic importance in the Uruguayan financial system – by helping it reduce capital requirements of some of its assets, freeing up capacity under the existing limits on a consolidated basis. This will enable Banco Santander to further support additional local lending in Uruguay, particularly in activities linked to the real economy, such as support to small and medium-sized enterprises through the expansion of the Santander Advance program, as well as in trade finance activities, helping to stimulate economic growth and employment in Uruguay.