Peru's strong macroeconomic indicators enable it to access international loans on favorable terms, German Development Cooperation stated.
"Peru, as a country with high profitability and good macroeconomic indicators, can access loans on favorable terms," the Chief of German Development Cooperation in Peru, Nicole Maldonado, told Andina News Agency.
In turn, KfW (Germany's Development Bank) Resident Director in Peru, Julia Mohs, explained that each project financed by German cooperation is assessed differently. However, the favorable profile of the Peruvian State is taken into account when setting loan interest rates.
"We do not apply standard terms; these always depend on the type of project. We offer long-term loans with grace periods. All these factors ultimately determine the final rates," Mohs indicated.
"Our projects are backed by a German government guarantee, and most loan financing agreements are signed with the Peruvian State, which has a good credit rating. This helps us offer favorable terms," she added.
German Development Cooperation in Peru has been operating for 65 years.
It currently has a portfolio of projects worth S/6 billion (about US$1.743 billion) across four priority areas: climate change, forest and biodiversity protection, governance, and urban development.
(END) CNA/JJN/MVB