Two loans for US$95 million granted to Peru

(January 27, 1992).- In the presence of Peruvian President Alberto Fujimori, CAF will sign tomorrow (Tuesday 28) two important loans for Peru.

One of them, for US$25 million, will go to the Central Reserve Bank to finance a credit program for small- and microenterprises, producers of goods and services for domestic consumption or for export. The executing body is the Development Finance Corporation (COFIDE) which will grant loans to this sector through financial intermediaries which, in turn, will organize the microenterprises, advising them on formulation of applications, and giving training and technical assistance.

The second loan for US$70 million is for a multisectoral global credit program which will consider applications for credit from the fisheries, manufacturing, mining and tourism sectors to acquire and install machinery and equipment, build or expand property, improve hotel capacity, build or reequip fishing boats, and services related to the technology of mining and industrial projects. COFIDE is the executing body.

The two agreements will be signed by CAF President & CEO Enrique Garcia who is on an official visit to Peru. The ceremony will take place in the presidential palace in the presence of President Fujimori, the Minister of Economy Carlos Boloña and others.

CAF has approved loans for Peru for a total of US$530.8 million for project execution and pre-investment studies.

The operations approved include financing for industrial projects in the private sector, small- and microenterprises, state oil industry (hydrocarbon production and transport), steel and textile industries and the telecommunications area.

In addition, 35 technical cooperation operations have been implemented (with non-reimbursable funds) for a total of US$1.4 million.

For foreign trade, CAF has two support mechanisms: SAFICO and MECOFIN which supplement national financial systems.

Through the Andean Trade Financing System (SAFICO), CAF has approved commercial credit operations for US$1,089,000 in favor of Peru as borrower country. For export finance, SAFICO has disbursed US$1,199,000.

Through the Financing and Confirming Mechanism for Letters of Credit for Imports from Third Countries (MECOFIN), CAF has executed operations with Peruvian companies for US$120 million.