The International Monetary Fund says Uruguay is repaying its debts to the lending institution ahead of schedule.

The IMF said in a statement Friday that Uruguay will advance its repayment of $916.4 million in debts due in August 2007. The IMF, in welcoming the move, said the decision will cut Uruguay's outstanding obligations by nearly one half.

All of Uruguay's debt payments due in 2006 were paid in a similar way four months ago.

Last year, two other South American countries, Argentina and Brazil, said they would repay their entire IMF debts early following years of economic turmoil.

Some information for this report provided by AFP and Reuters.