Peru Details Debt Plan

Peru is planning to save around $1.5 billion in debt servicing costs on debt owed to the Paris Club group of lenders by extending out debt due in 2010 by another three to five years. The country owes around $5.75 billion to the Paris Club in total. Last year, Peru paid down $1.5 billion of its debt to the creditors. The government also says it aims to reduce the ratio of its foreign public debt from 78% of the total to 69%, converting it into domestic debt by the end of next year. The move will help protect Peru from external shocks say economists. Next week the government will make its eighth local-currency bond issue, this time worth $70.7 million. It last sold local-currency sovereign bonds in August, worth $121 million.