Announcement of World Bank Lends One Hundred Fifteen Million Dollars for Peru’s Economic Recovery Program on May 3, 1979

FOR IMMEDIATE RELEASE .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/80 May 3, 1979 WORLD BANK LENDS $115 MILlrON FOR PERU'S ECONOMIC RECOVERY PROGRAM The World Bank has approved a loan of $115 million to help Peru meet foreign exchange requirements for high priority imports in support of an economic recovery program (ERP). The loan proceeds will help finance imports of industrial raw materials, intermediate goods, and spare parts; agricultural, electricity generating, mining, and forestry equipment, and spare parts; and inputs • for on-going preventive health programs. Industrial inputs, particularly for industries with underutilized capacity and with the potential to generate exports, are expected to represent over 80% of the imports financed by the loan. Counterpart funds to be generated by the sale of the Bank loan funds will be used primarily to finance high priority agricultural, mining, and infrastructure projects in the government's 1979-80 public sector investment program. Technical assistance to carry out the ERP wi 11 also be provided under the loan. The World Bank's $115 million loan is being made to the Government of Peru for a term of 17 years, including 4 years of grace, at 7.9% interest per annum • • NOTE: Money figures' are expressed in U.S. dollar equivalents.