The Central Bank of Uruguay published the Financial Stability Committee’s communiqué following its first-half 2025 meeting, concluding that Uruguay’s financial system remains stable and able to continue supporting economic performance, underpinned by its strength, liquidity and capacity to respond to adverse scenarios. The committee reviewed current and potential macro-financial risks, pointing to a volatile international financial environment, elevated levels in certain markets, weaker global growth expectations, tariff measures that have increased global economic policy uncertainty and the risk of disruption in global capital markets, and continued uncertainty linked to the war in Ukraine and the escalation in the Middle East. Regional surveillance highlighted Argentina’s ongoing fiscal and social challenges despite some improved indicators, and Brazil’s outlook alongside concerns about public accounts imbalances. Domestically, the system was assessed as having adequate solvency and liquidity, with moderate credit growth, low delinquency and a strong capital position in the banking sector, while stress tests indicated readiness to absorb adverse scenarios. The committee also judged that issues involving some firms linked to livestock-sector capitalization contracts would not have direct impacts on financial stability, and noted work under way to modify the regulatory framework to enable more effective management of related risks, alongside continued close monitoring and coordination to preserve financial stability.

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