US$400 million for Program against Poverty

CAF President & CEO Enrique García said that the main objective of this loan was "to contribute to reducing poverty and extreme poverty in the country, particularly in rural areas, by means of execution of a set of social and infrastructure investments."

“This will expand opportunities for economic and social development among the most vulnerable population, under an approach of integrated human development and the concept of territoriality in the framework of the new regional decentralization process which Peru is implementing to address local and regional needs,” he added.

"Peru has made an important decentralizing effort, with the idea of bringing government nearer to the population and has been executing investments in infrastructure and social programs which generate employment, narrow the needs gap and improve family incomes, aware that access to public services provides opportunities for learning in production, commerce, savings, among others," García said.

The CAF chief added that poverty reduction was the result of sustained economic growth, increased investment, generation of employment, improvement of family income, as well as the dynamic of the social investment programs implemented, such as the "Program of Social and Infrastructure Investments against Poverty" executed with financial support from CAF in 2007 and early 2008. This program contributed to focalizing government expenditure and reduced extreme poverty in some regions of the country.

Garcia said that for growth to be sustainable and inclusive it was necessary to continue with investments in economic and social infrastructure which resulted in higher levels of overall productivity and united the most geographically distant localities with the most dynamic markets of the country.

Lastly, the CAF president said that follow-up of execution of the Program - with an approach based on integrality and territoriality, and supporting the decentralization process which Peru is implementing - will allow evaluation of the impact on the quality of life of the poorest people and determine the sustainability of the projects in the most disadvantaged regions.