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Lima, Peru

The $2.5bn in funding will take the form of contingency loans, released if events, such as international financial market volatility, pose a threat to the projects focused on strengthening public expenditure and risk management and increasing productivity.

Alonso Segura, Peru’s minister of economy and finance, said the bank’s support recognised the strength of the country’s public policy reforms and ensures progress achieved so far is not put at risk.

The first project is comprised of steps to improve public expenditure management in sub-national governments by promoting fiscal responsibility, improved administration, efficiency and transparency.

It also works to improve risk management in public-private partnerships by strengthening the planning and evaluation process.

The second project seeks to strengthen the quality of public education and improve the business environment by reducing entrance, operation and market costs, as well as the creation of a simplified customs regime to help exports and access to international markets.

The two credit lines will have a disbursement period of three years, which can be extended to six, and a repayment period of 14 with a grace period of 13.5.