A team from the Inter-American Development Bank flew to Peru today at the request of IDB President Enrique V. Iglesias to assess the country’s financial needs for recovery and reconstruction following a destructive earthquake that struck the southern part of the country on June 23.
The IDB stands ready to support the government of Peru in its efforts to rehabilitate and reconstruct the area affected by the quake.
The Bank will provide assistance in the following manner:
- Reformulation of a portion of $325 million in existing loans to Peru in the areas of urban infrastructure, roads, health and education.
- Preparation of an emergency loan of $20 million to be approved by short procedure.
- Preparation of additional medium-term financing for the reconstruction process.
- Provision of a $50,000 grant for immediate medical relief.
President Iglesias is meeting today with Peru’s President-elect Alejandro Toledo and his team to discuss IDB assistance in response to the earthquake emergency as well as ways the Bank will collaborate with the new government in restoring economic growth and in supporting social development. In particular they will discuss Bank financing for increasing employment, strengthening democratic institutions, improving health, education, and housing, and supporting private sector activity.