Defiant Debtor

Peru ties payments to exports

The inaugural address delivered last week by Alan García Pérez, Peru's new President, was more than an impassioned speech to his people. It was a blunt message to the foreign banks and governments that have loaned Peru money. Determined and defiant, García vowed to renegotiate Peru's $13.7 billion debt during the next twelve months, and said that while doing so he would devote no more than 10% of his country's export earnings to making interest payments.

Since Peru's exports may bring in only $3 billion this year, 10% of that total would cover less than one-third of the $ 1.1 billion...

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