Peru Pays Debt Off Early

Peru’s proposal to pay back early as much as $2 billion of debt owed to the Paris Club was accepted by a majority of the group’s creditor nations. Peru will cut its borrowing costs by paying down the debt early since the government’s bond yields today are lower than the interest rate it is paying on the Paris Club debt, Economy Minister Pedro-Pablo Kuczynski said last week. Peru will sell bonds in international and domestic markets to finance the payment.