Summary of the external public debt of Peru

 No. E-216 RESTRICTED C· p. v .. This report is restricted to use within the Bank. 67145 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT SUMMARY OF THE EXTERNAL PUBLIC DEBT OF PERU March 31, 1952 Economic Department Prepared by: lames 1. Lynch Reviewed by: Carel de Beaufort  Table of Contents I. Outstanding External Public Debt 1 II. Status of Service of Public Issues 2 III. Pledges of Revenue and Assets 3 IV. Ann:ual Service Payments .3 Table A-I: External Public Debt of Peru Table A-2: Estimated Contractual Interest and Amortization Payments on the Public External Debt of Peru A-3: Pledged Revenues and Assets on Individual Eonds ( This report wal;! prepared by James J. Lynch, checked by Andre,·] C. Huang and reviewed by Carel deBeaufort.)  SUMMA,RY OF TEE EXTERl;w:, P~IC _DEBT OF PERU I. Outstand1ng:EJxterpal Public Debt 1. As of 31 October 1951. the external public debt of Peru (including obligations guaranteed b~ the PerUVian Government) stood at an estimated total amount of the equiva.le~t of $105.4 million. Tlus was composed as follows: External Debt of Peru 11 Outstanding at )1 Oct.1951 In cUrrency Equivalent; of nayment in U.S.~ , ,- (in millions) A. Publie Issueg 'l)ollai'Bonds $65.213 $65.213 Sterling Tranche (vnth $ option) $10.949 ?J 10.949 Y sterling Bonds, 1, 0.432 1.?10 B. Inter-Governmental Loans fromU! S. Govt. $ 6.691 6.691 If n Argentine Govt. ~rg.~.47.450 11.833 O. Private Issues Chimbote Steel Loan from Banque de Paris et des Pays-Bas (Guaranteed by Peruvian Govt.) $ 9!500 9·500 Total PublIc External Debt (incl. guaranteed debt) $105.396 m. Note: The distribution of the debt by currency in which it is - payable ShOV1S that 88% is in U.S. dollars, 10.9% in Argentine pesos and 1.1% in sterling. 2~ In addition to the amounts mentioned in paragraph 1 above. the following non~guaranteed obligations J.I lolere outstanding on 31 October 1951: . tA:.. Two Eximbank loans to private corporations (not guaranteed by Peruvian Govt.) , undisbursed as of 10/31/51 21.400 C1 ty of Lima 6~~ 1928....1958 2.887 3. Since 31 October +951 the Peruvian Government has borro,,,ed $2.S million from the IBRD. 1/ iI For details of the various obligatioD.s.seeAnnexA":l~ Y Converted at the rates Sl)9cified in the "dollar-equivalent ll , clauses of the original contracts (see para 7). J! Further ~articulars are given in Annex A-l. ... / ...  - 2 - II. Status of Service of Public Issues 4. Apart from one of the sterling issues (the Guano Loan !/). service on the "Thole of Peru' e publicly issued external debt was sus'Pended in 1931, and re- mained in default until 1941. 5. In 1947. a unilateral debt-settlement plan was put into operation by the Peruvian Gover~~ant. Under this plan there was no reduction in principal, the exchange being made on a par for par basis .• The 6-7~coupons wre reduced,however, to 1-2~p, ",ith sinking fund set at 1/2% of the bonds outstanding. Ho provision '1S.S made for arrears of interest which at that time amounted to $85 million. r.:::.'he t1rlO sterling issues were offered conversions to dollar issues at a rate of $4.03 :: ];1. 6. The U.S. bondhOlders' representatives rejected the plan on two main grounds, namely. (a) because accruals of uast L,.terest ':lere ignored and (b) because the maximum rate of interest (2~) "'~s regarded as inadequate. 7. The British bondholders' representatives rejected the plan on the same grounds. ::But the British registered a further obj&Ction~ It \'J8.S their contention that the original contracts covering the bonds evidencing the t"10 sterling issues in default provided for service payments, at the bon~holder's option, in either = sterling or U.S. dollars. at a conversion rate of $4.866 ~l for the sterling tranche of the Peruvian National 6%'s of 19~8-6l. and of $4.80 - ~l for the City of Lima 5%I S of 1911-65. The British Treasury refused its consent to the proposal = to convert at $4.03 ~l. SUbsequently, after the 1949 devaluation of sterling, the Peruvian Government adopted a conversion rate of $2.80 = 1.1. The :British bondholders' representatives repeated their protest, and appealed again to the conversion rates provided for in the original contracts. 8. Recently, a revised plan of settlement has been worked out between the U.S. Foreign 30ndholders Protective Council and tr~ Peruvian Government. This provides for (a) raising the maximum rate of interest from 2!% to 3% from 1953 onwards and (b) the recognition of arrears to interest through the issuance of non- interest bearing scrip certificates eqUal to 10% of the accrued interest on the outstanding bonds; these ne".'! certificates ,-,ould be paid off in fifteen equal annual instalments, beginning 1 January 1953. The revised plan has still to be apyroved by the Peruvian Congress. iJ December 1, 1932 and June 1, 1933, 7~51 coupons paid at the r"tte of 5!;;, December 1, 1933 paid at the rate of 20~ of the face value, June and December 1934 and 1935 coupons paid at the r8.te of 50;:; of the face value, subsequent coupons to January 1, 1938 cancelled. Under a debt settlement plan of 1938, June 1 and all subsequent coupons paid at the rate of 4% per annum in accordance with the debt plan of that year. Sinking fund payments from June 1932 and thereafter \lere in defaul t but bonds have been purehased for redem-?tion out of special remittances. Under the 1938 debt adjustment ,lan sinking fund payments made regularly from ac- cumulative sin.~lng fund of 20. either by purchase in the market or the drawing at par. The Council of the Corporation of Foreign :Bondholders (.British) felt that a somewhat hisher rate of interest than the 4% arrived at in the 1938 debt adjust- ment plan was justified, especially in view of the special security and status of the Guano Loan but recommended the offer to the bondholders as the best obtainable.  -; - 9. An offer in similar terms has also been made by the Peruvian Government to the Council of the Corporation of Foreign Bondholders (British), together with a proposal that the dollar option of the bondholders should be honored by using = a conversion rate of $4.0; ~1, applied tp the maturities up to June 1949, = and thereafter a conversion rate of $2.80 L1. The Council has notified the Peruvian authorities that the conversion rates proposed cannot be recommended by them to the bondholders, although the proposed plan is othel'\'rise acceptable. 10. That lJart of the revhed plan which provides for the issuance of non- interest bearing scrip equivalent to 10% of the unpaid accrued interest will add ;$1,16.3,000 to the outstanding :grincipa1 of' the dollar debt. Of this, $6,271,000 is attributable to the dollar issues, and $892,000 to the two sterling issues carrying the dollar option. if conversion were carried out at the original contractual rates. Ill. Pledges of Revenue and Assets - All of the public external issues no"" outstanding are securedby:pledgesof Governmental revenues OJ" assets~ The Bank has no complete details of the provisions of ~l the original contracts ,nth regard to these pledges. However. the summary of the provisions given in Hoody's 1950 Manual JJ gives some informatiop.. I·jost of these bonda 'vere included in the Debt Adjustment Plan of 1947. and this Plan includes a reinstatement clause in the fol1ovring terms: II • • • • • in case of default in payment of principal, interest or sirudng fund, all obligations of the Republic under the bond contracts re- lating to the old bonds shall be restored.'f This may keep alive the pledges until the new bonds are paid off. The particulars announced of the 1951 Debt Adjustment Plan do not indicate whether the pledges ,",ould lapse if a bondholder accepted the offer contained in the 1951 Plan. (See A-; for complete details.) IV. Annual §ervice PaYments 12. The fo11o,nng table shows the incidence of the service charges on the external public debt of Peru (including guaranteed debt) in each of the years 1952 through 1976. Attention is dra ...m to the sharp drops that will take place in 1955. 1959. 1974 and 1975. More detail is given in Annex A-2. iJ See annex A....3.· .. ~ / .. ~  - 4 - Estimated Interest and Amortization PaY1!lents Qn the Public External Debt of Peru (expressed in thousands of U.S. dollars) Tota.1 Deb t Service Payments by Type Debt out- Palments ~uri~ ~ear of Ourrenc~ standing Amorti- In- U. s. ?J Pounds Argentine ~ Januar:y 1 , za'\iion terest Total Dollars Sterling pesos U 1952 102,426 11 8,041 2,918 10,959 6,080 146 4,733 1953 102,823 6,181 3. 259 9,440 4.561 146 4.733 1954 95.563 5.528 2,425 7,953 5,440 146 2,367 19.55 88.903 3,222 2,354 5,576 5.430 146 1956 84.498 3. 280 2,275 5.5.55 .5,409 146 1957 79.979 3.317 2,194 5.511 5.365 146 1958 7.5.364 3.389 2,113 5.502 5.356 146 1959 70,615 1,949 2,024 3,973 3.827 146 1960 67,240 2,032 1,9)2 3.964 ),818 146 1961 63.710 2,041 1.832 3.873 3. 809 64 1962 60,098 2,067 1,735 3,802 3,802 1963 56,380 2,153 1.634 3.787 3,787 1964 52,493 2,003 1,528 3.531 3,.531 1965 48.668 2,108 1,423 ),531 3.5:31 1966 44,643 2,217 1,313 3.530 3,530 1961 40,410 2,209 1.197 3,406 3. 406 1968 36,071 1.978 1,082 3.060 3.060 1969 32,115 2,097 963 ',060 3,060 1970 27,921 2,222 838 3,060 3.060 1971 23,477 2.355 705 3,060 3.060 1972 18,767 2,497 56) 3,060 3,060 1973 13,773 2,647 41; 3,060 3.060 1974 8,479 1.168 255 1,423 1,423 1975 6,1 43 200 184 384 384 1976 5,743 212 172 384 384 17 Amount outstanding for 1952 is as of October 31, 1951. gj Included at the original rate are two sterling bonds with a dollar equivalent clause (see footnote 4 in Table 2 for complete details). 1/ Debts in this category are payable in dollars, sterling or pesos. In view of Feru's relatively favorable position in Argentine pesos the Peruvian C~vern¥ ment expects to pay service charges in t~3t currency.  T~ble A-l: EXTERNAL PUBLIC DEET OF Pr:RU (In thousands) Page 1 Debt outstanding Debt contracted ~ince October 31, 1951 October 31, 1951 Identification In currency bXT)ressed in In currency i'~xpressed in of l>aym~nt U. S•. dolJars of. payment_ U.S, dollars NATIONAL AND GOnRIDmHT GUAR.K.:~TEED DEBT DOLLAll. DEBT Dollar bonds Republic of Peru Ext. Sinking Fund Dollar :Bonds t Series Ap Dt 0, D and E, 1-2 1/2%, 1947-1997 JJ ~~~t§lt~ •• 1643 44 ••• Bonds eligible for conversion to Series A to D bonds ~ Republio of Peru Secured Sinking Fund Gold Bonds 7%, 1927-1959 $ 2,723 2.723 Peruvian National Loan Ext, $iru~ing Fund Gold Bonds First Series. 6%~ 1927-1960 $11.-994 11,994 Peruvian National Loa.n Ext. Sinking Fund Gold Bonds Second Series, 6%, 1928-1961 $ 5,636 5.636 Province of Callao, Peru, Guaranteed and Secured Sinking Fund Gold Bonds, 7 1/2%, 1927-1944 11 $ 217 217 Total bonds eligible for conversion to Series A to D bonds ~~~t~?~ ?91R2 Bonds eligible for conversion to Series E bonds BJ Republic of Peru National Loan ~xt_ Sinking Fund Gold Bonds Second Series, 6%. 1928-1961 (Sterling Tranche) $ 8~949 :J 8~949 Oi ty of Lima 5% sterling Loa.n.. 1911-1965 11 $ 2,000 21 2,000 Total bonds eligible for conversion to Series E bonds H·~~~~~ f~l,~~~ Total dollar bonds $76,162 76.162 Private bank loan Chimbote Steel loan from Banque de Paris et des Pays-Bas, 5 1/4-6%, 1951-1959 J./, 11 .~ 9.500 flJ 9,500 W  Table A-V iiiXTERNAL :?UBLIC D3BT OF (Continued) (In thousands) pe.ge 2 Debt outstanding Debt contracted since October 31, 1951 October 31t 1951 Identification In currency Expressed in In currency Expressed in ~_of J)~ymeJl,1:; __ u..~S. dolJ,.ars of'P~yme~t _ lJ. S. dollars DOLLAR DEl3T (Cont inued I.B.R.D. loan to Government of Peru 4 1/2%, 1/23/52- 1967 (Port of Callao loan) $2.5009.l 2 1 500 91 u.s~ Government loans Export.-Import Bank loan to Corp. Peruana del Santa. ~. 1945-1956 11 . ill - $ 216 216 Maritime Administration 3 1/~h, various maturities $ 3,166 3~166 Surplus property $ 339 339 Lend-lease outotanding balance ill $ 2 .. 970 2,970 Total U.S. Government loans $ 6,691 6,691 Total dollar debt $92,,51 92.351 $2.500 b2QQ ARGENTINE PESO DEJ3T Instituto de Promocion del IntercombiO Argentino . no interest. 1949-1954 ~ Arg. $47,4S0 1J! STERLING DEBT Republic of Peru 4% (formerly 7 1/2%) Guano Loan, 1922 b 4:22 ill 1,210 1!±/ TOTAL nATIONAL Al~D GOV;:Rl'fl.:IENT GUA.t1AUTEED DEBT 105,326 ; 2,500 DEBT no.T GUARAlJT".clED BY liJATIOUAL GOVEBNl>4ENT DOLLAR DEl3T City of Lima Ext. Secured Sinking Fund Bonds 6 1/2%. 1928-195815.1 ! 2,887 2>887 TOTAL NON-GUA11Ai:!T}<--:ED DBET 2,88Z TOTAL liJATIOlfAL. GUARAHTF.:hlD .r\..:;m :ilION-GUABAl\IT]f.-m DEBT !2~ 2.500  Table A-I: Footnotos' Page 3 Sumllk'q,I'Y by Currency Debt outstanding Debt ccntracted since October 11, 1951 October 11. 1951 Amount Percent Amount Percent u.s. dollar debt Disbursed and still outstanding 85. 740 79~2 Undisbursed 9~500 8.8 2~500 100.0 Total 95~240 88.0 2,190 100.0 Argentine ~eso debt 11,831 10.9 Sterling debt = 1,210 1.1 Total debt 108,283 100;0 2,.500 100.0 1.1 Series A-D bends \vere issued pursuant to' the excha,nge offer of .Tune 26, 1947 in exchange for Renublic of T"eru 7%, 1927-1959; Peruvian Naticnal Loan First Series 6%, 1927-1960; the U.S. dcllar tranche of the Peruvian National Loan Second Series 6~t 1928-1961; and Province of Callao 7 1/2%,1927-1944 dollar bonds at par. The cffer prcvided that interest arrears un to' December :31, 1946 ",ere to' be cancelled, interest to' be naid on the ue'\.\!' bcnds at 11~ fcr 1947 ' and 1948, at 1 1/2% for 1949 and 1950, at 2% for 1951 and 1952 and 2 1/2% thereafter. A cumulative sinking fund of $382,307 per annum was provided for as long as the exchange offer "las open and thereafter a cumulative sinking fund of 1/2% of the total ameunt of new bends issued. Under an effer of December 31, 1947 Series E bonds "rere issued in exchange 'lor the twO' sterling issues, namely.,. the sterling tranche of the Peruvian Natienal Loan Second Series 6%, 1928-1961 and the City of Lima 5%, 1911-1965. Prier to' December 31, 1959 exchange ",as made at $4 principal amount of Series E bonds for ;hI sterling of old bonds (plus a cash adjustment of $0.03 per bl sterling) and since December )1, 1949 the cffer has been extended to' December 31, 1952 at the rate of $2.80 of Series B bonds for b1 sterling of old bonds. Interest rate nrovisions en Series E bonds are the same as for Series A-D bonds. A cumulative sinking fund of $48,842 ner annum was provided for the years during which the exchange offer ~ms open and thereafter a cumulative sinking fund of 1/2% per annum of the tctal amount of Series E bonds issued. On November 14, 1951 i t \-laS announced that, as a result of negotiations ""ith the Foreign :Bondholders protective Council, a net-1 debt adjustment plan had been formulated and vrould be presented for apnroval of the Peruvian Congress. This plan ~'Till apply to the Series A-D bonds and the four issues which "'Tere exchangeable into Series A-D bonds. Under the proposed ne'1r' plan, interest "rill be paid as urovided in the dollar offer dated June 26, 1947 for the period from J8.nuary 1, 1947 to December :31, 1952 and thereafter at the rate of 3% per annum. Sinking fund will be provided 'ler the amortization ef the bends in accordance \-lith the original offer.  Table A-I: Footnotes (Continued) page 4 In addition non-interest bearing scrip certificates in an amount equal to 10j& interest accrued up to December 31. 1946 and unpaid ",ill be issued. The scrip certificates \,lill be -paid off in 15 eQual annual installments"commencing January 1, 1953. - - iV These bonds are at present eligible for exchange into Series A-D bonds under the debt settlement plan of 1947 and will be included in the ne\'t plan as outlined in Footnote 1. JV Guaranteed by the national government. !±! It was announced by the Peruvian Government that negotiations are being conducted "'ith the Council of Foreign Eondholders to reach a settlement similar to that recently proposed for the dollar bonds. (See Footnote 1) At the present time these bonds are exchangeable for Series E dollar bonds under the debt settlement offer of 1947. sJ The original contract contains a clause -providing for nayment at the bondholders' o-ption in either 'Pounds or dollars at ~l = $4.8665. This figure was furnished by the Peruvian GOvernment in sterling as hl,839,OOO and was converted to dollars at the contractual rate. The aunlicability of the dollar-equlvalent clause is in dispute « between the Peruvian Government and representatives of the British bondholders. fJ The original contract contains a clause providing for payment at the bondholders. option in either pounds or dollars at ~l = $4.80. This figure was furnished by the Peruvian Government in sterling as h4l7~OOO and was con- verted to dollars at the contractual rate. The anplicabi1ity of the dollar-equivalent clause 1s in dispute bet~,een the Peruvian Government and representatives of the British bondholders. 1./ This loan "Tas made to the Corporaci(Ull.Peruana del santa to finance the purchase of a steel conversion plant fI,nd rolling mill from Delattre de Frouard Raunis and Elektrokemisk of NOT1l1ay. It is learned from ,the lJlarch 1951 issue of "Informaciones Commerciales tl • Lima, that the loan is to be repaid as follows: 10% of the total amount at the moment when the French authorities approve the definite orders of purchase-sale, 10% against shipping documents of the machinery, the balance \,lithin a term of five years, starting t\,TO and a half years after the date of the definite orders of purchase-sale, i.e., from the moment the metallurgical plant is transferred in a condition fit for normal operation. W It was reported by the Peruvian Government that this loan was completely undisbursed as of this date. 21 Completely undisbursed as of February 29, 1952. 10/ The Export-Import Bank has also made t\'TO loans to private corporations in Peru, "lhich are not guaranteed by the national government, as follows: Cerro de Pasco corporation -- $20,800,000i Fermin Malaga S. e. Hijos -- $650,000. Both of these loans trJers completely undisbursed as of October 31, 1951. 11/ The terms of the obligation are being .l'I3 negotiated and therefore the terms of repayment and the interest rate are not yet fixed.  Table A-I: Footnotes (Continued) Page 5 w Through July 31, 1951 the follo1:ling amounts had been paid on this loan: U.S. $1.000,000, b 250,000 and Arg. $21,668.387.06. The balance of the loan ca·n be D~id in,U"S" dollars, Argentine pesos or pounds sterling at the following rates: U.S. $1 = Arg. $4.01 and hl = Arg. $11.23. In vie1:T of Perufs present peso position tho g~vcrnmcnt c:~octs that the loan ~ill be paid in pesos. 1:1/ In a recent statement submitted by the Peruvian Government t this amount was given in dollars. The Argentine peso amount was derived by conversion at the rate of U.S. $1 = Arg. $4.01, which is the rate provided in the loan contract. Jl!I Converted at I:tl = $2.80. 1SJ At the present time these bllnds are not included in the debt settlement offer of 1947 nor in the neN plan \·,hich "las proposed late in 1951. IBRD - Statistics Section March 28; 1952  Table .At-21 :;STliIII.T:8D COHTRACTUAL INTERlJST AiilD l\.HORTlZATION PAYlCHTS on THE PUBLIC EXTLR1iAL DEBT OF PERU (Expressed in thousands of U.S. dollars r~g~ .~ Dollar bonds Bonds uayable in dollars only l' Bonds payable. in ?ql1ars Total dollar bonds 6' - ~ or sterling ~ ~ Year Debt out- Payments during year Debt <;>ut- payments during year Debt ,?ut- payments during year ~t~l1d.il'!g Ai1l0rti- In- Total atandlng Amo~ti- 1n- Total standing Amort i- In- T tal J~t 1 zation terest Jan. 1· ~ation terest Jan. 1 zation terest 0 1952 65,21~ 670 2,69sl1 3,365 10,9~ - - 76,162GJ 670 2,695 3,365 1953 69,809 979 1,906 2,885 11,841 67 1,09551 1,162 81,650 1,046 3,001 4,047 1954 67,851 1,025 1,860 2,885 11,674 71 325 396 79,525 1,096 2,185 3,281 1955 65,801 1,074 1,811 2,885 11,497 74 322 396 77,298 1,148 2.133 3.281 1956 63,653 1,126 1,759 2,885 11,314 78 318 396 74,967 1,204 2,077 3,281 1957 61,401 1,181 1,704 2,885 11,123 82 314 396 72,524 1.263 2,018 3,281 1958 59,039 1,239 1,646 2,885 10,924 86 )10 396 69,963 1,325 1,956 3,281 1959 56,561 1,301 1,584 2,885 10,717 91 305 396 67,278 1,392 1,889 3,281 1960 53,959 1,367 1,518 2,885 10,500 95 301 396 64,459 1,462 1,819 3,281 1961 51,225 1,436 1,449 2,885 10,275 100 296 396 61,500 1,536 1,745 3,281 1962 48,353 1,510 1,375 2,885 10,040 106 290 396 58.393 1,616 1,665 3,281 1963 45,333 1,588 1,297 2,885 9.793 111 285 396 55,126 1,699 1,582 3,281 1964 42,157 1,670 1,215 2,885 9,536 117 279 396 51,693 1,787 1,494 3,281 1965 38,817 1,758 1,127 2,885 9,267 124 272 396 48,084 1,882 1,399 3,281 1966 35,301 1,851 1,034 2,885 8,984 130 266 396 44,285 1,981 1,300 3 .. 281 1967 31,599 1,950 935 2,885 8,689 137 259 396 40,288 2,087 1,194 3,281 1968 27,698 1,845 831 2,676 8,373 133 251 384 36,071 1,978 1,082 3,060 1969 24,008 1,956 720 2,676 8,107 141 243 384 32,115 2.097 963 3,060 1970 20,096 2,073 603 2,676 7,825 149 235 384 27,921 2,222 838 3,060 1971 15,950 2,197 479 2,676 7.527 158 226 384 23,477 2,355 705 3,060 1972 11.556 2,329 347 2,676 7,211 168 216 384 18,767 2,497 563 3,060 1973 6,898 2,469 207 2,676 6,875 178 206 384 13,773 2,647 413 3,060 1974 1,960 980 59 1,039 6,519 188 196 384 8,479 1,168 255 1,423 1975 6,14, 200 184 384 6,143 200 184 384 1976 5.743 2l.2 172 384 5,743 212 172 384 See footnotes at end of table.  Table A-2: ESTIIiAT7JD CONTRACTUAL INTErCST AIm AHORTIZATION PAY14:ENTS O1i TBI:: PUBLIC EXTERNAL DEBT OF PiJRU - Contd. (Expressed in thousands .of U.S. dollars) 2 -~ Chimbote steel loan zI I.B.R,D. loan u.s.CTOvernment l-oans §J-~-. Debt out- Payments during year Debt out- payments during year Debt out- Payments durinr~ yef?T Year standing Amorti- In- Ttl sta.nding Anorti- In.-. T t ... l standing Amorti- In.-. T t Jan. 1 zat10n terest 0 a Jan. 1 zation terest 0 ~ Jan •. 1 zation terest 0 al 19.52 9,50o?:i 1,900 1,900 - ?J 56 56 3t721Y 637 122 759 19.53 7,,600 2,500 113 113 2,948 298 103 401 1954 7.600 1,520 1,520 2,500 138 111 249 2,_650 298 92 390 1955 6,080 1,520 1,520 2J362 144- 105 249 2,.351 298 82 380 1956 4,560 1,520 1,520 2,218 151 98 249 2,053 287 72 359 1957 3,040 1,520 1,520 2,067 158 91 249 1,766 253 62 315 1958 1,520 1,520 1,520 1,909 165 84 249 1,513 253 53 306 1959 1,744 172 77 249 1,260 253 44 297 1960 1,572 180 69 249 1,007 253 35 288 1961 1,392 188 61 24'9 754 253 26 279 1962 1,204 198 52 250 501 253 18 271 196} 1,006 206 43 249 248 2!+8 9 257 1964 800 216 34 250 1965 584 226 24 250 1966 358 236 13 249 1967 122 122 3 125 1968 1969 1970 1971 1972 1973 1974 1975 1976 See footnotes ut end of table.  Table .A.-2~ ESTIIIAT:8D CONTRACTUAL INTEBJ:;ST AND AlvIORTlZATION PAnlENTS ON THE PUBLIC EXTl.~Rl~AL DEBT OF PERU - Contd. (Expressed in thousands of U.S. dollars) Page 3 Total d.;11a.rd~bt §J Argentine loan 2J Sterling bonds Year Debt out- Payments during year Debt out- psyments during year Debt out- payments during year standing Amort i- In- Total standing ~norti- In- Total standing Amo::ti- In- Total Jan. 1 . _;ation. ___ ,tl2)rest Jan. 1 zation terest Jall:.. 1 zabon terest 1952 84,38~ 3,207 2,873 6,080 11,83# 4,733 4 1 733 1, 210Y 101 45 146 19~ 9 ,698 1,344 3,217 4,~61 7,100 4.733 4,733 1,025 104 42 146 19 92,275 3,052 2,388 5, 40 2,367 2,367 2,367 921 109 37 146 1955 88,091 3,110 2.32 0 5,430 812 112 34 146 1956 83,798 3,162 2,247 5,409 700 U8 28 146 1957 79,397 3,194 2,171 5,365 582 123 23 146 1958 74,905 3,263 2,093 5,356 459 126 20 146 1959 70,282 1.817 2,010 3,827 333 132 14 146 1960 67,038 1,895 1,923 3,818 202 137 9 146 1961 63,646 1,977 1,832 3,809 64 64 64 1962 60,098 2,067 1,735 3,802 19~ 56,380 2,153 1,634 3,787 19 52 ,493 2,003 1,528 3,531 1965 48,668 2,108 1,423 3,531 1966 44,643 2,217 1,313 3,.530 1967 40,410 2,209 1,197 3,tH)6 1968 36,071 1,978 1,082 3,060 1969 32,115 2,097 963 3,060 1970 27,921 2,222 8)8 3,060 1971 23,477 2,355 70.5 3,060 1972 18,767 2,497 563 3. 060 1974 13,773 2,647 413 3,060 197 8,479 1,168 255 1.423 1975 6,143 200 184 384 1976 5,743 212 172 384 See footnotes at end of table. Table A-2: ESTIH. AT.JD CONTRACTUAL I1~TI:m;;ST AND MIOHTIZtiTIO]J PAYlC11TTS on TIE PUBLIC :JXTl.:;ImAL DEBT OF PI:RU - Contd. (Expressed in thousands of U.S. dollars) Page 4 -~-T~1i;:i-d;btY ---- Service payments by tyPes of currency Debt out- . Payments during year Year standing .Amorti- In- Total U. S. Pounds Argentine Jan_ 1 zation terest dollars sterling pesos 1952 102,42rJJ 8,041 2,918 10,959 6,080 146 ~J733 1953 102,823 6,181 .3,259 9,440 4,561 146 ,733 1954- 95,563 5,528 2,425 7,953 5,440 146 2,367 1955 88,903 3,222 2,354 5,576 5,430 146 1956 84,498 3,280 2,275 5,555 5,409 146 1957 79,979 3,317 2,194 5,511 5,365 146 1958 75.364 3,389 2.113 5,502 5,356 146 1959 70,615 1~949 2,024 3,973 3,827 146 1960 67,240 2,0.32 1,9.32 3,964 .3,818 146 1961 6.3,710 2,041 1,832 .3,873 .3,809 64 1962 60,098 2,067 1,7.35 3,802 .3,802 1963 56,380 2,15.3 11634 .3t 787 3,787 1964 52,49.3 2,003 1,528 3,531 3,531 1965 48,668 2,108 1,423 3,531 3,5.31 1966 44,64.3 2,217 1,31.3 3,530 3,530 1967 40,410 2,209 1,197 3,406 3, lt06 1968 .36,071 1,978 1,082 3,060 3,060 1969 32,115 2,097 96.3 .3,060 3,060 1970 27,921 2,222 838 3,060 3,060 1971 23,477 2,.355 705 .3,060 .3,060 1972 18,767 2,497 563 .3,060 3,060 197.3 13,77.3 2,647 413 3,060 3,060 1974 8,479 1,168 255 I t 424- 1, 423 1975 6, 143 200 184 38 384 1976 5,743 212 172 384 384 See footnotes on 5.  Table A-2: FOOTNOTES Pa,q-e_1) !/ These bonds consist of Series A to E dollar bonds and dollar bonds eligible for conver~ion to Series A to D dollar bonds. This schedule \'laS COml)uted according to the debt adjustment plan recently proposed (see note 1 on Table A-l). It was assumed that the bonds ,'10111d be retired by open market purchases at an average J;lrice of 40 in 1952 and 50 thereafter and that all bonds would assent to the new plan during 1952. It was estimated that a total of approximately $6,271,000 scrip certificates will be issued in 1952 for back interest and this total was included in the debt outstanding beginning in 1952. It was assumed that these scrip certificates will be retired by open market purchases at an average price of 50. y Amounts outstanding for 1952 are as of October 31, 1951. iJ assent Includes $1,391,000 of back interest 1947-1951 which would have to be paid on unassented bonds i~ they all in 1952. !±/ This consists of bonds which are currently eligible for conversion to Series E bonds. It was assumed that these bonds will receive an offer similar to t~~t currently being considered for the Series A to D bonds. (See note 1, Table A-l). These bonds were here at the contrD.ctual exchange rates, (see notes 5 and 6, Table A-l). It was assumed that approximately 000 of scrip certificates will be issued in 1952 for back interest and this total \faS included in the debt outstanding beginning in 1952. It was further assumed that bonds and certificates wo1lld be retired by purchases in the open market at an average price of 50. sJ Includes $766,000 of back interest 1947-1952 \,lhlch \..,otlld be payable if all the unassented bonds were to assent to the plan in 1953. 2/ Does not include dollar bonds of the Oity of Lima "/111eh are at present in defa1llt and "'hieh have not been offered any participation in the debt adjustment plans of the national government. 1./ part It has been assumed that this loan would be com~letely disbursed in the last 2 months of 1951 or in the early of 1952. The sched1lle for this loan is a rough estimate since the payment dates are contingent upon ap~roval of the purchase and delivery of shipping documents. §} This does not include the settlement of a Lend-lease credit outstanding in the amount of $2;970,000 as of October 31, 1951, which is in the process of negotiation and on \'Ihich i t is not possible at this time to estimate payments due (see note 8 on Table A-l). 21 No exact details of repayment on this loan are available. IERD - Statistics Section March 28, 1952  A-3 Pledged Revenues and Assets on Individual Bonds 1) Sterling (G~o) 7ts of December, 1922, due Jt4~e 1, 1948: Security - (a) ]y a first charge on the rzvenue derived from the tax of 2.50 soles '''hich is levied on eV3ry 1% of nitrogen contained in a ton of 920 kilogrammes net of all guam sold for consumption in Peru; (b) By deposi t ~,1i th the bankers I agents of more than 50% of the shares of the Compania AO.luinistradora del Guano, \1hich is the only channel through i,rhich "the Government sells ,<.;U,ano to agriculturists in Peru. It is provided that th3 Government shall not assume direct adminis- tration or collection of the guano tax during the life of this loan; that in the event of depreciation of Peruvian e:'"cha.nge, the amount of the l;U8.no tax may be proportionately increased; that vhen the bankers may consider that the funds in their handp from the revenue of the tax are in excess of the requiremonts for the servic3 of the loan for the next ensuing period of twelve months, they shall from tim8 to time return such excess to the company:. 2) External Secured Sinking Fund 7s (Tobacco Loan) of Mareh 1, 1927. due September 1, 19591 Securi-tl"" Secured by a first lien on G;ross revenues of the Gov0rn- ment tobacco monopoly. Republic agrees to pay all expenses of tabacco monopoly from other revenues. Other Provisions - Re~ublic will not reduce, abolish or in any manner impair revenues pledged as security while this issue 1s outstanding~ In event of default on this issue. Trustee may a~~oint a special agency to collect revenues pledged. 3) Lxternal Sinking F1xud 6s (National Loan) First Series. of December 1, 1927. due December 1. 1960: Security ~ Republic of Peru agrees (a) not to issue bonds of any addi- tional series unless gross revenues have averaged for three fiscal years not preceding at least three times maximum annual service charges on its entire funded debt, including additional series to be issued, (b) so long as any bonds of the Peruvian National Loan are outstanding, not to issue or guarantee any loan Or obligations secured by a lien on specific re- venues nor. without consent of Fiscal Agents. on specific assets, unless prior thereto all bonds of Peruvian National Loan are G;iven a lien on such revenues or assets, subject only to any existing liens and (c) that. in event. so long as any bonds of Peruvian National Loan are outstanding, the Republic issues or guarantees any funded debt "Thereby maximum annual service charges on entire funded debt, and not repurchased and held for retirement, are increased to more than one-third of average annual ~ross revenues for three fiscal years next preceding, then a.ll revenues col- lected or deposited ,,,i th the Caja de Depositos y Consignaciones automati- cally become subject to a lien in favor of bonds of Peruvian National Loan, subject only to already existing liens. Caja de Depositos y Consignaciones. tr~stee, and depositary for government administrative and judicial funds ... / ...  - 2 .... and the depoei ts of Tmblic institutions, is nov, charged with collection or receipt in deposit of a substantial part of the Re;)ublic's revenues. The Caja agreed to apply available revenues received by it each month to the payment to the Piscal Agents of the monthly service charges for all bonds of Peruvian National LOfu"1 before payin,r; over any sume;; to the Rc~public. The Republic has provided by law (i) for the collection by the Caja, so long as any of the bonds of the Peruvian National Loan are outstanding, of all present and future revenues of the Republic, exce:,t r2venues pledged at the rate of said law ae;; e;;ecurity for other external loans and entrusted for collection during the life of such loans to other agenCies, and except, also for the present, the revenues of posts and telegraphs and customs re- venues not pledged at the date of said la", as security for external loa..."ls, and (11) for the deposit",:!. th the Caja, after deduction of the prior charges thereon, of all revenue pledged at the date of said law as security for exter,nal loans and entrusted during the life of the loan to other agencies for collection. The Republic agrees that until all outstanding external secured debt l1aS been retired it "rill not issue any additional series of the Loan \'1i thout consent of Fiscal Agents except tor purpose of either purchasing or redeeming external secured bonds or for ~ublic works under construction on December 1, 1927. 4) External Sinking Fund 6$: (JIrational Loan) Second Series of October 1, 1928, due October 1, 1961; Securi t;z - r,J:he direct obligation ot the RelJublic of Peru. For details of security, etc., see first sAries (Ho. 3 abov~). 5) External Si~~~ng Fund Is~2~s, Series At E, C, D and E, of January 1, 1947, due January 1, 1997l Rights Upon Default - In case of default in payment of prinCipal, in~ tereet or sL"lking fund, all obligations of the Republic under the bond contracts relating to the old bonds sOOll be restored, and each ne,,! bond shall thereafter entitle holder to the payment of all un~aid interest then accrued or thereafter accruing on the Qond in exchange for ~·rhich ne", bonds have been issued at the rate specified in such bond from the date of the original default, on such bond. (Source; Moodyl s Governments and r.Iunicipals, 1950).