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IDB approves $206,5 million for public sector financial reform in Peru

The Inter-American Development Bank today announced the approval of $206.5 million in financing to Peru to strengthen an ongoing government public finance sector reform program designed to obtain prudence, transparency and accountability of fiscal policy and improve investor confidence.

The resources will assist the government in three areas: tax efficiency, productivity and allocation of public resources and enhancement of the performance levels of the deconcentrated public enterprises and agencies.

For this the program will provide support for the development of a managerial culture within the public administration, introducing modern management systems within the central government and its decentralized agencies and facilitating their eventual introduction in local government.

The IDB financing consists of a fast-disbursing sector loan of $200 million and a $6.5 million loan for technical assistance.

Both loans are for a 20-year term, at the variable annual interest rate, now 6.84 percent. Peruvian local counterpart funds total $3 million.

The Finance Ministry* is in charge of carrying out the program.

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