The Ministry of Economy and Finance (MEF) approved the external debt operation, to be agreed between the Republic of Peru and the International Bank for Reconstruction and Development – IBRD for up to the sum of US$100 million.
The amount established in Supreme Decree 012-2024-EF -under the framework of Law 31640, on Public Sector Debt for Fiscal Year 2023-, is intended to partially finance the Investment Program “National Technical Irrigation Program for a “climate resilient agriculture”.
The cancellation of the aforementioned external debt operation is carried out through 22 semi-annual installments, consecutive and, if possible, equal, with a grace period of 6 years and six 6 months. The external debt operation accrues an interest rate based on the SOFR Rate, plus a margin to be determined by the IBRD, in accordance with its interest rate policy.
The aforementioned external debt is subject to a commitment fee of 0.25% per year on the undisbursed balance of the loan; as well as an initial commission that will be paid only once, equivalent to 0.25% of the loan amount.
It should be noted that the “National Technical Irrigation Program for climate-resilient agriculture” will require a national counterpart of up to US$26,531,372 million, for which it has budgeted the necessary resources to finance the national counterpart for this year.
The aforementioned external debt operation complies with the provisions of Legislative Decree 1437, Legislative Decree of the National Public Debt System, as well as the “Directive for the Coordination of Public Debt Operations, Contracting of Contingent Financing, and Granting or Contracting of Guarantees in Public Private Partnerships”.
Source: Larepublica
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