Peru Signals Debt Prepayment

Peru is also set to improve its debt profile by prepaying $1.5 billion of debt owed to the Paris Club group of lenders in the first half of the year, according to a report by Dow Jones. The country owes around $5.75 billion to the Paris Club in total. It last prepaid debt to the lenders in 2005 when it also arranged to clear $1.5 billion. Last year the government said it was aiming to reduce the ratio of its foreign public debt from 78% of total debt to 69%, converting it into domestic debt by the end of 2007. The move will help protect Peru from external shocks say economists.