First loan granted by the CAF to the Toledo administration will be used for investments in health, agriculture, transport and Foncodes

A loan for US$200 million to finance part of the Multisectorial Public Investment Program 2001- 2002 was today signed by the Peruvian minister of Economy and Finance, Pedro Pablo Kuczynski, and the executive president of the Andean Development Corporation (CAF), Enrique García.

The loan will contribute to the economic growth and development of the country through the execution of a set of priority investments in the sectors of education, health, agriculture, transport, Foncodes (National Compensation and Social Development Fund), and others.

This first loan granted by the CAF to the present Peruvian administration is repayable in 12 1/2 years including a two-year grace period. Interest is payable at the six-month Libor rate plus 3.75% annually.