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International Monetary Fund approves $257.7 million standby loan for Peru

International Monetary Fund approves $257.7 million standby loan for Peru

The International Monetary Fund approved a 25-month US$258 million (euro200 million) standby agreement for Peru to support President Alan Garcia's economic program.
The program aims to consolidate macroeconomic stability, tackle high poverty levels, strengthen the financial system and move ahead with growth-enhancing reforms, the IMF said in a statement Friday. It said Peruvian authorities intend "to treat the agreement as precautionary."
Peru's last package with the IMF, a 26-month credit line worth US$422.8 million (euro327.7 million), expired in August. The government treated that pact, plus earlier loan arrangements, as precautionary, and never drew down any of the funds.
Garcia, whose previous 1985-1990 term as president ended in hyperinflation and economic disarray, returned to Peru's presidency after winning a June 2006 runoff.
IMF Deputy Managing Director Murilo Portugal said in the statement that in recent years "Peru has implemented sound economic policies" that "have resulted in the longest economic expansion on record, low inflation, a robust external position and declining vulnerabilities."
Portugal said Garcia's government, which is less than a year old, is "taking measures to further improve this excellent performance during 2007-08."


Updated : 2021-05-18 11:15 GMT+08:00