Peru will strengthen its fiscal management sustainability to foster economic recovery in the post-pandemic era with help from a $500 million loan from the Inter-American Development Bank (IDB).
The loan, the first of two consecutive operations, will support the implementation of reforms aimed at boosting tax collection, bolstering public investment quality to encourage economic and fiscal recovery, and improving the effectiveness of public spending.
The operation will support measures to strengthen fiscal rules that promote transparency and a sustainable fiscal framework. In line with this fiscal discipline goal, the project includes the approval of legal regulations designed to increase tax revenues, provide temporary tax relief to businesses, and increase the tax system’s transparency.
To improve public spending management, this operation will support the adoption of rules to strengthen and streamline public spending management and to optimize investment resource allocation to regional governments.
It will also promote the participation of women-led companies in the public procurement market; provisions for managing ecoefficiency in public administration agencies; and rules to improve scrutiny of public spending on gender equality and climate change.
The $500 million IDB loan is for a 20-year term and carries an interest rate based on LIBOR.
About us
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.
Nicaretta,Romina Tan
Perez Rincon, Belinda Elizabeth
