The Inter-American Development Bank today approved a $200 million loan to continue supporting the government of Peru in carrying out institutional, operational, legal and regulatory changes to improve the quality of public management and expenditure.
The project is the second programmatic loan to help Peru meet its external financing needs for the 2005-2007 cycle.
The program seeks to accomplish its objective by strengthening government capacities to analyze and monitor the budget, budget investment, management by results and administrative systems, and to promote greater private sector participation in public sector investments.
“The idea is to take advantage of the synergy between reforms that will improve the budget, public-debt management and public investment under the public-private partnership policy approved in 2005, while at the same time enhancing the quality of current and capital expenditure,” said Carlos Pimenta, IDB project team leader.
As part of the operation, Peru is committed to continuing its efforts to maintain a macroeconomic environment consistent with the government's objectives of achieving greater effectiveness in its public management systems.
This 20-year loan will be executed by Peru’s Ministry of Economy and Finance.