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MEF approves a contingent loan of up to US$300 million with the IDB

MEF approves a contingent loan of up to US$300 million with the IDB

The Ministry of Economy and Finance (MEF) approved a contingent loan of up to US$300 million with the Inter-American Development Bank (IDB) in favor of the Productivity and Competitiveness Improvement Program II. The credit is given in support of policy reforms with a deferred withdrawal option.

As announced by the IDB days ago, this is the second of two consecutive operations financed by the Peruvian government independently, although technically linked to each other, under the modality of programmatic loan to support policy reforms. The first operation of US$50 million was approved in 2019.

“The new program aims to strengthen public institutions that work to improve competitiveness, and improve regulatory quality to increase private investment, and encourage innovation,” said the international organization.

The program includes a component aimed at strengthening the institutional framework to implement the National Competitiveness and Productivity Plan, and measures such as the preparation of a proposal for a National Quality System, as well as the reinforcement of the Specialized Team of Executive Boards and the Specialized Team in Investment monitoring.

MEF and IDB go by forestry, aquaculture and mining sectors

The Program for the Improvement of Productivity and Competitiveness II will seek to improve the business environment for investment by improving sectoral, transversal and planning regulatory quality.

To this end, it will support, among other numerous actions in different areas, the coordination of measures to improve the competitiveness of the forestry sector in a sustainable manner, the expansion of markets for the aquaculture sector in a sustainable manner, and the modification of the regulatory framework of prior consultation to make more efficient its application during the prospecting phase of mining exploitation.

Additionally, to improve the regulatory quality of support for innovation, measures will be implemented such as integrating the operation of the National Innovation Program for Competitiveness and Productivity with the National Fisheries and Aquaculture Innovation Program, consolidating existing programs in a national innovation agency, organizationally reform the National Council for Science, Technology and Technological Innovation, and approve a strategy and regulatory framework for strategic development and strengthening of the management model and network of the Center for Productive Innovation and Technology Transfer.

Formal productive companies will be beneficiaries of the program, particularly those that operate in the forestry, aquaculture and mining sectors, and innovative formal companies and innovative entrepreneurs, through the improvement of public policies in their respective areas.

The data

– The US$300 million IDB loan has a 20-year repayment term, a 5.5-year grace period, and an interest rate based on SOFR.

– The IDB is one of the main sources of long-term financing for the economic, social and institutional development of Latin America and the Caribbean.

Source: Larepublica

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