Peru creates coronavirus fund for SMEs

Peru creates coronavirus fund for SMEs

Debt Capital Markets Corporate & Sovereign Strategy Economy & Policy Debenture Loans Fixed Income Latin America Coronavirus Peru

Peru's Finance Ministry announced on Wednesday the creation of a fund in response to the COVID-19 emergency that will allow small and medium-sized businesses to pay existing working capital credit lines and restructure or refinance their debts.  

The fund is expected to be PEN300 million ($87.7 million), last five years and be administered by the state-owned development bank COFIDE, the ministry said in a press release. 

Financial institutions and credit unions will be able to access theses resources to provide loans ranging from PEN30,000 to PEN90,000 that will cover between 30% and 70% of debtor needs.  

The health, tourism, commerce, service and production sectors are eligible to tap the new financing facility. Credit lines and refinancing of debts cannot exceed 36 months. Financial institutions and credit unions may extend grace periods for up to six months.