has approved the contingent loan to be agreed between the Republic of Peru and the
for up to €200 million (US$231 million).
Through Supreme Decree No. 245-2025-EF, published in the Official Gazette El Peruano on Friday, the government approved the debt operation known as the "Contingent Loan to Address Natural Disasters and the Fight Against Climate Change."
The repayment of the aforementioned contingent loan is set for 20 years, including a 36-month grace period starting from the date of signing the loan agreement.
It will accrue interest at a rate based on the six-month Euribor plus a 2.02% margin.
The contingent loan is subject to an initial assessment fee of 0.5% of the loan amount and a commitment fee of 0.40% per year on the undisbursed portion of the loan.
The regulation authorizes the MEF, through the General Directorate of the Public Treasury, to exercise the Interest Rate Conversion option specified in the recitals of this regulation, within the framework of the approved contingent loan.
For this purpose, the MEF's General Directorate of the Public Treasury is authorized to sign, on behalf of the Republic of Peru, the conversion instruction, as well as all documentation required to implement said conversion.
The executing entity of the "Contingent Loan to Address Natural Disasters and the Fight Against Climate Change" is the MEF, through the General Directorate of the Public Treasury.
The repayment of principal, interest, fees, and other expenses arising from the contingent loan will be covered by the MEF using budgetary resources allocated for public debt service.
The recitals of the regulation state that the approved contingent loan may only be used in the event of a natural or technological disaster, an emergency situation, or an economic and/or financial crisis in the South American country.