The Ministry of Economy and Finance (MEF) and the
German Financial Cooperation, through the
German Development Bank (Kreditanstalt für Wiederaufbau - KfW), have signed a €54 million loan agreement to finance the program "Promotion and Sustainable Management of the Forest Production in Peru."
The aim of the program is to promote forest management under criteria of sustainability and productivity, contributing to reduction of deforestation, mitigation of climate change, and conservation of biodiversity in Peru.
It will benefit holders of enabling titles: native communities, small-scale producers, and concessionary companies, thus generating economic dynamism with lower social and environmental risks.
The total cost of the program is S/426.71 million (€112.29 million), which will be financed with loan proceeds up to €54 million, with a non-refundable financial contribution —granted by the German Financial Cooperation— up to €6 million, and with national counterpart resources from the
National Forest and Wildlife Service (Serfor) totaling €52.29 million.
The German Financial Cooperation loan shall be repaid over a period of no more than 18 years, including a grace period of no more than five 5.5 years, and carries a concessional rate of interest.
The program and its benefits
The "Promotion and Sustainable Management of the Forest Production in Peru" program will benefit the holders of enabling titles: native communities, small-scale producers, and concessionary companies, by granting them forest permits, forest management certifications, among other things.
The MEF's head appreciated the valuable support that the Government of the Federal Republic of Germany and the German Development Bank (Kreditanstalt für Wiederaufbau - KfW) provide to the actions taken by the Peruvian Government in order to speed up the implementation of public investment projects, in this case, in the forestry sector, thus contributing to the creation of jobs and the economic recovery.
(END) NDP/MDV/RMB/MVB
Published: 5/28/2021