Peru’s government has authorised state-run oil firm Petroperu to seek $2 billion in state-insured loans to ensure the continuity of its operations, according to an emergency decree published yesterday. Petroperu, burdened with massive debt and undergoing a fragmented restructuring process, warned last month it needed the funds to avoid halting fuel output amid financial difficulties and high oil prices driven by the Iran war.
The decree said the Energy and Mines Ministry would assume “contingent liabilities” with domestic or international entities related to the transaction, along with their financial costs, to be covered by the ministry’s budget.
The document signed by interim President Jose Balcazar said the measure was “exceptional” and aimed at ensuring the nationwide supply of hydrocarbons.
The government also authorised the Energy and Mines Ministry to assume up to $500m in short-term contingent liabilities of the oil company.
Prime Minister Luis Arroyo said the funds would be supplied by international banks and channelled into a trust fund managed by Proinversion, guaranteed by the state, and that the measure would not affect Peru’s public debt.
“For the first time, the financing will not come from the public treasury; not a single sol of Peruvians’ taxes will be touched,” Arroyo told a Press conference.
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