The Government of Peru, represented by the
signed a contingent loan of €200 million (US$235 million) aimed at strengthening the South American country's capacity to respond promptly and effectively to natural and climate-related disasters, emergencies, and economic or financial crises.
This operation marks a milestone in the bilateral relationship, as it represents the AFD's first sovereign operation in Peru.
It will allow the Peruvian government to access resources swiftly to protect the population, safeguard national infrastructure, and maintain economic stability in the face of emergencies and disasters covered under Article 13 of Legislative Decree 1437.
This enhances the Peruvian State's capacity to respond promptly, reducing the impact of these crises on public finances and the population.
Similarly, the operation helps strengthen the country's resilience and supports the consolidation of the public policy on Disaster Risk Management (DRM).
Risk management partner
According to the AFD, France is established as a strategic partner of Peru in disaster risk management thanks to this operation, a key area for climate adaptation and sustainable development.
The
French agency will complement the loan with technical support worth €1.5 million, implemented by Expertise France, aimed at strengthening the institutional framework, capacities, and tools of the national disaster risk management system.
The support will focus on enhancing early warning systems and improving coordination among institutions involved in defining and implementing disaster risk management public policies.
Additionally, the program incorporates measures to support women and vulnerable groups, ensuring they are better prepared to tackle disasters.
"This contingent loan reflects our long-term commitment to Peru and to its agenda on climate adaptation, risk governance, and fiscal stability," AFD Director Xavier Mesnard stated.
Background
Due to its geographic location, Peru has historically been exposed to various types of natural risks, which are intensified by climate change, increasing their frequency and impact.
More than 57,000 people were affected by flooding and landslides caused by heavy rains across 20 Peruvian regions in February 2025.
These extreme climate events exacerbate social inequalities, which were already pronounced since the pandemic, and the onset of El Niño further increases the vulnerability of the most at-risk populations.
"With this first sovereign operation by the AFD, France reaffirms its purpose of deepening financial and technical cooperation with Peru, supporting initiatives that contribute to economic stability, the fight against climate change, and the well-being of the population," French Ambassador to Peru, Nathalie Kennedy, stated.