MEF approves 40 million euro debt with German national bank KfW

The Ministry of Economy and Finance (MEF) approved the external debt operation with the Reconstruction Loan Corporation – KfW up to 40 million euros, called the Program “Comply with OECD standards: Governance with Integrity I”.

Through Supreme Decree No. 280-2021-EF, the MEF provides that the cancellation of the aforementioned external debt operation is in six years from the date of signing the loan contract, through consecutive semiannual installments and whenever possible equal.

The expiration of the first repayment installment on May 15, 2022, in accordance with the KfW policy on cancellation deadlines for its operations; accruing a fixed annual interest rate to be determined by the KfW on the date the loan contract is signed, in accordance with its policy on interest rates.

The aforementioned external indebtedness is subject to a commitment fee of 0.25% per annum on the undisbursed loan balance, as well as a one-time administration fee of 1% on the total amount of the loan.

“The Minister of Economy and Finance or whoever he designates is authorized to sign on behalf of the Republic of Peru, the loan contract for the external debt operation that is approved in article 1 of this Supreme Decree; as well as the Director General of the General Directorate of the Public Treasury of the Ministry of Economy and Finance to sign the documents required to implement the aforementioned operation ”, the document refers.

It should be noted that the amortization service, interest, commissions and other expenses caused by the external indebtedness operation that is approved through article 1 of this Supreme Decree, is attended by the Ministry of Economy and Finance with charge to the budgetary resources assigned to the payment of the public debt service.

The document has the signature of President Pedro Castillo; the president of the Council of Ministers, Mirtha Vásquez; and the head of Economy and Finance, Pedro Francke.