IDB Approves $60M Loan to Boost Secondary Education Access and Quality in Uruguay

Uruguay’s secondary education system has long grappled with chronic issues of student dropout and grade repetition, particularly in low-income and marginalized communities.

In a continued effort to elevate educational outcomes and equity across Latin America, the Inter-American Development Bank (IDB) has approved a $60 million loan to support Uruguay’s efforts to strengthen its secondary education system. This latest operation represents the third loan under a Conditional Credit Line for Investment Projects (CCLIP) established in 2016, which aims to address systemic barriers to student retention and performance, particularly among Uruguay’s most vulnerable youth.

A Broader Vision for Educational Reform in Uruguay

Uruguay’s secondary education system has long grappled with chronic issues of student dropout and grade repetition, particularly in low-income and marginalized communities. The newly approved loan forms part of a multi-phase strategy to modernize secondary education, ensure continuity in schooling, and close persistent learning gaps.

By focusing this phase on reducing absenteeism, improving retention rates, and boosting academic progression, the program reflects Uruguay’s broader commitment to making education both more inclusive and resilient in the face of social and economic inequalities.

Tackling Dropouts and Repetition Through Holistic Interventions

At the core of the initiative is the goal of decreasing dropout rates and the number of students who are held back in school. These issues are particularly pronounced among students from vulnerable households, who often face compounding challenges such as economic hardship, limited parental support, and constrained access to educational resources.

To address these, the program will:

• Expand full-day school models that provide extended learning time, enabling deeper academic engagement, extracurricular enrichment, and stronger school-community connections.

• Implement a comprehensive tutoring plan specifically designed for first-time scholarship recipients, helping them navigate their transition into the secondary education system and reinforcing foundational knowledge to bridge learning gaps.

• Introduce enhanced technological tools to modernize the management of student attendance records and learning data, enabling early identification of at-risk students and more responsive interventions.

Empowering Students Through Scholarships and Support

A major pillar of the IDB-backed program is the direct support for students in vulnerable contexts. To this end:

• 60,000 scholarships will be awarded, coupled with social and educational orientation services, to alleviate financial barriers and improve student motivation.

• An additional 35,000 students will gain access to extended school day centers, where they can benefit from enriched academic and social environments beyond traditional class hours.

These combined efforts aim to ensure that students not only remain in school but also thrive academically and emotionally, reinforcing the idea that inclusive education goes beyond the classroom.

Strengthening Uruguay’s Educational Infrastructure and Data Systems

The program will also enhance the institutional capacity of Uruguay’s educational sector, particularly in terms of:

• Data-driven policy implementation, supported by upgraded information systems

• Improved monitoring of student attendance, which has been a persistent challenge in Uruguay, especially in under-resourced areas

• More agile and evidence-based decision-making that can adapt to changing educational needs

Favorable Loan Conditions for Long-Term Impact

The newly approved $60 million IDB loan is structured under favorable financial conditions designed to support Uruguay’s long-term educational investment. The loan features:

• A repayment term of 22.5 years

• An 8-year grace period

• An interest rate based on the Secured Overnight Financing Rate (SOFR)

These terms provide Uruguay with the flexibility to implement systemic changes without immediate fiscal pressure, allowing for long-term educational transformation with sustainable outcomes.

Building a More Equitable Future Through Education

This latest funding operation underscores the IDB’s strong partnership with Uruguay and reflects the Bank’s regional commitment to education as a cornerstone of development and equity. As the third phase of the ongoing CCLIP framework, this loan marks another milestone in strengthening Uruguay’s capacity to provide quality education that is accessible, inclusive, and forward-looking.

With continued support, the program has the potential to transform the trajectory of thousands of young Uruguayans, ensuring that secondary education becomes a true gateway to opportunity rather than a point of departure.