IDB grants loan to Peru for its tax reform

The Inter-American Development Bank (IDB) granted a loan of 500 million dollars to Peru to strengthen the sustainability of fiscal management and support the recovery of the Andean country.

The loan, which has a repayment term of 20 years and an interest rate based on LIBOR, is the first in a series of two operations. It supports the implementation of reforms to increase tax collection, strengthen the quality of public investment for support economic and fiscal recovery, and improve the effectiveness of public spending.

The multilateral organization explained that the operation supports measures to strengthen fiscal and transparency rules that ensure a sustainable fiscal framework.

In line with this objective of fiscal discipline, the project includes the approval of legal regulations to improve the government’s collection capacity, grant temporary tax relief to companies, and increase the transparency of the tax system.

In terms of improvements in public spending management, the loan supports the introduction of regulations to strengthen and streamline public investment management, including improvements in the allocation of investment resources for regional governments.

K. Tovar

Source: Finanzasdigital