Summary of the external debt of Peru

 No. E 125 . 67048 . r_tql rtis not to be published nor may it be q~o ed as representing the Bank's views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT SUMMARY OF THE EXTERNAL DEBT OF PERU . December 1, 1950 .. Economic Department Prepared by: James J. Lynch  Table of Contents I. Descri:)tlon of the Extern"ll Debt and 1 Its Service Payments II. External Service Fayments 2 Table A-I. External Debt of Peru Table A-2: Estimated Interest and Amortization Payments on the External Debt of Peru  SUMMARY OF TEE EXTERlifAL DEBT OF PERU I. Description of the External Debt and Its Service Payment~ The total external debt of Feru outstanding in the last half of 1950 was equivalent to approximately $122 million. The major portion of this debt is made up of obligations payable in U.S. dollars amounting to $114 million; these include dollar bonds issued in the twenties, of which $67.4 million were outstanding on June 30, 1950. This amount had been reduced from $76 million since the 1947 adjustment plan was put into effect. It also includes $2.9 million City of Lima bonds not included in the plan. The major portion of the remainder of the dollar debt is made up of loans from the U.S. government, mainly the ExPort-Import Bank loans of $21 million. Only $272,000 of the Exim credit has been drawn down; the remainder, $20.8 million, has not yet been utilized. There are also small miscellaneous U.S. government loans including a Maritime Shipping Credit of $3.4 million and a Surplus Preperty credit of $328,000. There is a further debt to argentina in the amount of $19 million under a 1947 foodstuffs credit. ~he remainder of the debt is accounted for by three sterling issues amounting to 12.8 million, equivalent to US$7.8 million. T",o of these issues, equivalent to uS$6.4 million, are included under the debt adjustment plan and are exchangeable 11 fOr dollar ~onds and the other is the Guano loan on which a separate debt adjustment plan has been in operation for many years. For details refer to Table A-l. 11 Up to January 1, 19.50 thuse sterling bonds ",ere exchangeable into ne", Peruvian dollar bonds at ·~he rate of I,l = $4.00. This has been changed by the Peruvian government and exchange can only be made at the new rate of J.,l ::;: $2.80. ... / ...  -2- External Debt of Peru ( in thousands) Amount Outstand!~ Currency EA~ressed Date of nay't in U.S.$ Dollar Debt Total dollar bonds (6/30/50, 12/31/49) $ 70,261 Total U.S.Govt. debt (9/30/50, 6/.3 0 /5 0 ) 24,799 Argentine credit for foodstuffs 1947-48 ...1&.893 Total ·la1lar debt • • • • • $1l.3 t 953 Sterling debt 12/31/49 Sterling" bonds (not convert eel. to Series E $ bonds) L 2,298 $ 6,4.34 Guano loan 7-1/2%, 1922-48 12/.31/49f 470 1.316 Total sterlin~ debt • • • $ 7,750 TOTA:.1 DE3T $121,70.3 II. External Service ?ayments Total service ~ayments are estimated at $1.9 million in 1950, of which $1.8 million is in dollars r:md the reml'tinder in pounds sterling. The 1950 or 1951 ye1'l.rs are not re-}resentat ive years in l.1hich to vie'" the external debt l)aynents since the 1947 debt l'1.djustment plan has not been com:)letely assented to and. therefore only a portion of the 1"I..J11ortization charges are shown. In addition, bonds assentEd in It):5.o'''51,;;~~,::ei)-:e b?ck interest payments covering 1947 to dl".te; this ,·rill result in higher then normal interest payments s~1.o"m for these' years. 1955 is a more rel')resent~tive yef:lr in '.'!hleh to vie" the tot",l service cl:'l..e.r,r;:es at which time interest :o:)ayments "~liE amount to $2.8 million, amortization to $2 • .3 million and tokl service ch1:u'g:'s to $5.1 milli~mf 1'1.11_ in do11F-xS excel')t for the equivalent of US~52;000 payable in pounds sterling. Service payments reach a ueak of $6 million in 1956 and decline grAdually to $4.8 million by 1964. dro:pping sh~trply in the next yee.r to  -J- $3.7 million fmd further declininF' to $2.6 million in 1966, remaining at that level through 1971, drolJ}?ine' sharply in 1972 to ~609 ,000 and to only $86,000 for the years of 1973 and 1974. Listed on the follm·!ing page are the tot:".l debts and the required interest and amortization payments alonf" 1'Tith the breakd01'fll by type of currency. For additional details see Table A-2.  -4- ESTIMATED INTEREST AND AMORTIZATION PAYMENTS Ol~ TEE EXTE?]IAL DEBT OF ?E...'lU (Expressed in thousrnds of U.S. dollars) Tot a 1 Service ?a~nnent by Out- P~·ilments Currencies standing Amort i- Inter- Dollar Sterling .!.!ill!: debt zation est Total debt debt 1950 82,022 1,02) 875 1,898 1,846 52 1951 87,762 1,123 3,8)6 4,959 4,907 52 1952 92~340 1,162 2,319 3,481 3,429 52 1953 96,807 1,1]6 2,975 4,,111 4~059 52 1954 94,456 1,190 2,911 4,101 4,'\49 52 1955 91,974 2,285 2,846 5,131 5,079 52 1956 88,]16 3,3'12 2,699 6,071 6,019 52 1957 8],485 ),400 2,524 5,924 5,872 52 1958 78,537 3,467 2,344 5,811 5,759 52 1959 73,423 ),537 2,161 5,648 5,646 52 1960 68,1)6 ],611 1,975 5,586 .5,534 52 1961 62,668 3,663 1,781 5,LJ·44 5,Lt21 23 1962 52~991 3,722 1,587 ),309 5a09 1963 51,211 ],803 1,387 5,190 5,190 1964 45,180 ),658 1,182 4,840 4,840 1965 39,154 2.717 979 3,696 ),696 1966 33,921 1,782 848 2.630 2,630 1967 29,465 1,893 737 2,6;0 2,630 1968 24,732 2,012 618 2,63 0 2,630 1969 19,702 2,137 493 2,630 2,630 1970 14,359 2,271 359 2,630 2,630 1971 8,681 2,413 217 2,630 2,630 1972 2,648 543 66 689 609 1973 1,291 5Lj. 32 86 86 1974 1t 1.56 57 29 86 86 Note; For footnotes and det"dls see Table A-2  Table A~l: EXTERNAL DEBT OF PERU (In thousands) ,. Outstanding Date In currency Expressed in of payment U"S.· dollars DOLLA.l1 DEBT Dollar bonds Series A-E 1 - 2 1/2%, 1947-1997 6/30/50 $ 36,97 8 36,978 Bonds not yet converted to Series A-D Tobacco loan 7i~, 1927-59 6/30/50 :;,; 4,181 4,181 Peruvian national loan 1st series 6%, 1927-60 6/30/50 :t;; 17,769 17,769 Peruvian national loan 2nd series 6%, 1928-61 6/3 0/50 ~ 8,107 8,107 Callao 7 1/2~b, 1927-44 6/30/50 ~~ . 339 339 Total unconverted bonds 6/30/50 t 30,396 30,396 Lima 6 1/2~~, 1928-1958 12/31/49 ~ 2,887 2,887 Total dollar bonds !....]0,222: 70,261 u.s. Government debt Export-Import Bank - outstanding 41~1956 9/30/50 t 272 272 undisbursed 9/30/50 :". 20,800 20,800 }Jiaritime Adminj.stration 3 1/2~b - various maturities 6/30/50 ~ 3,399 3,399 Surplus property 2 3/8%, 1947-1952 6/30/50 o 328 328 Total U.S. Government debt $ 24,799 ?4.. 79~ Argentine credit for foodstuffs, 191~7-8 Y ~, 18,89.3 13,893 Total dollar debt 2;:13,953, STERLING DEBT Sterling bonds (not converted to Series E) Peruvian national loan 2nd Series 6%, 1920-61 12/31/49 5,199 Lima 5%, 1911-65 12/31/49 1,235 12/31/49 -g~}~ Guano loan 7 1/2%, 1922-48 __~..2 Total sterling debt 7.75° Total debt ~21,703 Accrued interest ;;.; 27,693 27,693 Tota1 .!!49 , 392 11 This credit is stated in Argentine pesos but, accordin:; to thrJ agree:n:ents is payable at the rate of 100 UoS. dollars for each 40: A;.~gent.ine pesos o  Xable A-?: ESTlilIlATED Il~~ST .AND AMORTIZATION" PAYMENTS ON TID EXTERHAL DEBT OF PERU (In thousands of U.S. dollars) page 1 Dollar bonds .l:J U"S .. Government.2:oans Total dollar debt Amount I;aymentfl Amount _ Pa;r'TIents Amount Payments Year out- Amort 1- In- Ttl out- Aruorti- In- Ttl out- Amorti- In- Tt 1 standing zation terest 0 a standing 7-hJ~ terest 0 a standing zation tet0~t 0 a 1950 70,261 595 78~ 1,375 4,011 395 76 471 74,272 990 856 1,846 1951 76,695 664 3,519j} 4,183 10,630 424 300 724 87.325 1~088 3,819 4,907 1952 74,798 702 1,496 2,198 17,140 424 807 1,231 91,938 1:126 2,303 3,429 1953 72,792 810 1,820 2,630 23,649 289 1,140 1,429 96,441 1,099 2,960 4,059 1954 70,767 861 1,769 2,630 23,360 290 1,129 1,419 94,127 1,151 2,898 4,049 1955 68,614 915 1,715 2,630 23,070 1,330 1,119 2,449 91~684 2,245 2,834 5,079 1956 66,326 972 1,658 2,630 21,740 2,358 1,031 3,389 88,066 3,330 2,689 6,019 1957 63,895 1,032 1,598 2,630 19,382 2,324 918 3,242 83,277 3,356 2.,516 5,872 1958 61,315 1,098 1,532 2,630 17,058 2,324 805 3,129 78,373 3,422 2,337 5,759 1959 58,570 1,166 1,464 2,630 14,734 2,324 692 3,016 73r304 3,490 2,156 5,646 1960 55,654 1,238 1,392 2,630 12,410 2,324 580 2,904 68,064 3,562 1,972 5,534 1961 52,559 1,316 1,314 2,630 10,086 2,324 467 2,791 62 1 645 3,640 1,781 5,421 1962 46,269 1,398 1,232 2,630 6,722 2,324 355 2,679 52,991 3,722 1,587 5,309 1963 45,773 1,485 1,145 2,630 5,438 2,318 242 2,560 51,211 3,803 1,387 5,190 1964 42,060 1,578 1,052 2,630 3,120 2,080 130 2,210 45,180 3,658 1,182 4,840 1965 38,114 1,677 953 2,630 1,040 1,040 26 1,066 39,154 2,717 979 },696 1966 33,921 1,782 848 2,630 33,921 1,782 848 2,630 1967 29,465 1,893 737 2,630 29,465 1,893 737 2,630 1968 24,732 2,012 618 2,630 24,732 2,012 618 2~630 1969 19,702 2,137 493 2,630 19,702 2,137 493 2,630 1970 14,359 2,271 359 2,630 14,359 2,271 359 2,630 1971 8,681 2,413 217 2,630 8,681 2,413 217 2,630 1972 2,648 543 66 609 2,648 543 66 609. 1973 1,291 54 32 86 1,291 54 32 80 1974 1,156 57 29 86 1,156 57 29 86 See footnotes on pag6 3.  Tab1e_4,-2: ESTHlATED Il~T:clt._ST .AND AJ{ORTIZATION PADIENTS ON TEE EXT::"''U'fAL DEBT OF PERU - Contd. (In thousands of U.S. dollars) page 2 Ste:rling de'Q.t Tot~~t-lI Amount Paym():nts Amount Payments Year out- A..'Ilorti- In~, Ttl out- Amort!-· In- T tal standing zntion terest 0 a standing zation terest 0 1950 7,75 0 gj 33 19 52 82,022 1,023 875 1,898 1951 437 35 17 52 87,762 1,123 3,836 4,959 1952 402 36 16 52 92,340 1,162 2,319 3,481 1953 366 37 IS 52 96,807 1,136 2,975 4,111 1954 329 39 13 52 94~456 1,190 2,911 4,101 1955 290 40 12 52 91~974 2,285 2,846 5,131 1956 250 42 10 52 88.316 3,372 2,699 6,071 1957 208 44 8 52 83,485 3,400 2,524 5,924 1958 164 45 7 52 78,537 J 467 j 2,344 5,811 1959 119 47 5 52 73,423 3,537 2,161 5,648 1960 72 49 3 52 68,136 3,611 1,975 5,586 1961 23 23 23 62,668 3,663 1,781 5,444 1962 52,991 3,722 1,587 5,309 1963 51,211 3,803 1,387 5,190 1964 45,180 3,658 1,182 L~,840 1965 39,154 2,717 979 3,696 1966 33,921 1,782 848 2,630 1967 29,465 1,893 737 2,630 1968 24,732 2,012 618 2,630 1969 19,702 2,137 493 2,630 1970 14,359 2,271 359 2,630 1971 8,681 2,413 217 2,630 1972 2,648 543 66 609 1973 1,291 54 32 86 1974 1,156 57 29 86 See footnotes on page 3.  Table A-2z FOOTNOTES . __. ______ ~ . _page 3 11 Includes ~,298,000 sterling bonds which are eligible to be converted to Series E dollar bonds. The Lima dollar bonds were not included in the Series A-E debt plan, but a schedule was made to show how they would be retired if they were givtn terms similar to those in the plan. It was assumed that dollar bonds will be retired by purchases in the open market at an average price of 35 in 1951 and 1952 and at 40 thereafter o y Includes the equivalent of $6,434,000 sterling bonds ,;,hich is assumed to be converted to Series E dollar bonds in 1951. :J./ Exoludes $18,893.000 Argentine credit on which there is no information readily available on repayment terms. ':±I Includes back interest on $6,1+33,000 of bonds ,vhich have assented in first ei€;ht months of 1950., :J Includes back interest on non-assented bonds which it is assumed vlill ass~mt in 1951.