The
Peruvian Ministry of Economy and Finance (MEF) has signed a loan contract with the German Financial Cooperation through the German Development Bank (Kreditanstalt für Wiederaufbau - KfW) for an amount in dollars equivalent to €350 million to finance the "Support program for the Peruvian Government within the framework of the health emergency."
The event was also attended by a representative of the
German Embassy in Lima, Florian Theus, head of the Development Cooperation Section.
The resources from this credit operation will allow the Peruvian State to meet the urgent demands within the framework of the COVID-19 health emergency, including the process of: acquisition, distribution, and administration of COVID-19 vaccines.
"The conclusion of this loan (agreement) recognizes the efforts made by our country to implement effective policies aimed at strengthening health services and containing the impact of the coronavirus," Minister Pedro Francke expressed.
"It also recognizes the effort to provide economic support to the most vulnerable households, as well as financial support for economic reactivation," he added.
The KfW loan will be repayable in 15 years, including a five-year grace period, through semiannual, consecutive, and —if possible— equal installments, in accordance with KfW policy.
Likewise, said debt operation accrues a variable interest rate based on the six-month LIBOR rate, plus a fixed margin to be determined by the KfW on the date the loan contract is signed —in accordance with its policies on interest rate.
During the event,
KfW Peru Office Director Erhard stressed that the loan so far represents the largest financing from the German Financial Cooperation to Peru.
He indicated that its disbursement will be made based on compliance with policies framed and organized in accordance with the structure of the Economic Plan to face COVID-19.
In turn, Development Cooperation Section Chief Theus stressed that German Cooperation —since the beginning of the pandemic— has supported, through initiatives of different entities, Peru in saving lives and alleviating the situation in the short and long terms.
Germany will continue supporting Peru on the road to a sustainable recovery from the crisis, he added.
(END) NDP/MVB
Published: 12/14/2021