Peru will enter into debt transactions with Germany's KfW and IDB

Photo: Courtesy

Photo: Courtesy

09:50 | Lima, Dec. 2.

Economy and Finance Minister Kurt Burneo has announced that Peru will enter into debt transactions with the German Development Bank Kreditanstalt für Wiederaufbau (KfW) and the Inter-American Development Bank (IDB) worth €215 million euros and US$150 million.

The government official made these remarks on Thursday during a conference held at the Presidency of the Council of Ministers in Lima.

"The other important issues discussed during the Council of Ministers (...) have to do with some external debt transactions, including debt transactions with KfW of Germany and a transaction with the Inter-American Development Bank, the latter being a loan worth US$150 million, as well as three draft loan agreements worth €215 million," he explained.

Likewise, the minister pointed out that the level of information on capital spending was reported at the national government level and at the subnational government level.

"We do this review every week, in order to be aware of our situation with regard to the accrued interest and be able to take the actions necessary to improve the performance in terms of implementation of capital expenditure," he explained.


In addition, the high-ranking official noted that the meeting served to discuss the progress of the economic reactivation plan, Peru Boost, warning that Congress has not yet made a decision on the bills introduced by the Executive Branch.

"Then, as the Prime Minister said, a letter will be sent to Congress, so that the latter can prioritize, above all, the bills linked to the economic reactivation program, known as Peru Boost," he remarked.

For example, Burneo noted that a supplementary loan was requested to be able to reimburse S/1.600 billion (around US$415.1 million) to the Petroleum Derived Fuel Price Stabilization Fund (FEPC).

"Despite the fact that three months have already passed, such request, such supplementary loan bill has not yet been addressed and a decision has not yet been made, although I have been told that the debate about this important bill in Congress, both in the Commission and at the plenary session, would have been recently scheduled," he added.


Published: 12/2/2022
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