“Uruguay is one of the countries best prepared to face the crisis”

Francisco Luzón

The executive vice-president for Latin America of Banco Santander was convinced that the global crisis will be more benign form now on across the region and specially in Uruguay, and that financial system will emerged strengthened from it too.

Oscar Vilas
- This is a difficult year globally, and although Uruguay is not appearing to be target of the worst of the crisis, is getting their backlash. How do you seet banking business in the country this year?

- I have always said that from this crisis nobody will be saved, is a global one and sooner or later the wave will come and reached it. But it is important to state that Latin America is solving the crisis significantly. Although I have been an advocate of what the region has progressed in the last five years, I have never imagined that at the height of this crisis and with it depth and extensión, Latin America could stand as well as it is holding. Uruguay is a clear example, the country has strengthened since 2002 a credible economic model in the world, which clearly supports the institutionalization of the country and the strength of their legal rules, which I believe have been crucial. That plus a restructuring of the system and a re-regulation after the 2002 crisis, I can say has produced a situation in a country that is a great asset that unfortunately one can see clearly when one do not have it. So I think, first that the financial system is well capitalized, strong, has a truly enviable levels of debts, has an enviable production and in general I think it is used to accompany the country's economic development. Secondly I think the crisis in general and particularly in Uruguay, has characteristics which we can not say that the country has strong holes. The country is very well prepared, possibly one of the best prepared -beyond the size - along with Chile, at this time to address very well out of this crisis. So, I believe the crisis will be more benign from now on in the region and in Uruguay, and that the financial system will emerge strengthened from it too. We are going to spend, obviously, to a slower growth of credit investment and of savings as it is occurring, nothing different from what happens in any country in Latin America, but different in intensity. It is lower the intensity of the slowdown, but in any case as I say, nothing dramatic compared with United States and Europe, a truly enviable position. The business will suffer, but I insist that the global economic recovery, which I am increasingly convinced that will occur in the first half of next year, will meet Uruguay in a good situation.

Profile
Name: Francisco Luzón
Born: Spain
Age; 62 years
Licentiate in Economics and Business Sciences, Bilbao
Information taken from newspaper: “El Pais”, Montevideo, Uruguay