Exhibit 6
This section provides information that supplements the information about Peru contained in Peru’s Annual Report on Form 18-K for the year ended December 31, 2014, filed with the U.S. Securities and Exchange Commission on July 15, 2015, as such Annual Report may be further amended from time to time. To the extent the information in this section is inconsistent with the information contained in the Annual Report, as amended to date, the information in this section replaces such information. Capitalized terms not defined in this section have the meanings ascribed to them in the Annual Report.
Recent Political Developments
On April 2, 2015, the President of the Republic of Peru, Ollanta Humala, appointed Pedro Cateriano as the new cabinet’s chief, and ratified all ministers in office, except for the ministers of Justice and Human Rights, Foreign Affairs and Defense.
The new ministers are Gustavo Adrianzén in the Ministry of Justice and Human Rights, replacing Fredy Otárola; Ana María Sánchez in the Ministry of Foreign Affairs, replacing Gonzalo Gutiérrez; and Jakke Valakivi in the Ministry of Defense, replacing Pedro Cateriano. These changes in ministers have not resulted in significant modifications to President Humala’s key agenda items, including expanding social inclusion.
The Economy
Gross Domestic Product and the Structure of the Economy
During the three months ended March 31, 2015, Peru’s economy increased 1.7% in real terms as a result of lower domestic demand which increased 2.8% compared to the three months ended March 31, 2014, due to a reduction of 26.5% in public sector investment and a decrease in public and private consumption and private investment in the three months ended March 31, 2015 compared to the same period of 2014, primarily as a result of a continuing decrease in the exchange terms of exports relative to imports and the worsening of the expectations of economic agents, as well as a decrease in public expenditure principally due to difficulties in investment execution by regional and municipal governments.
In the three months ended March 31, 2015, private consumption experienced an annualized growth of 3.6% in real terms and gross private investment decreased by 3.9%, as compared to the same period in 2014. Public sector investment decreased 26.5% in the three months ended March 31, 2015 due mainly to the decrease of 49.5% and 49.1% in investments by regional governments and municipal governments, respectively, in the three months ended March 31, 2015 compared to the same period in 2014. Such decrease was partially offset by the investments of the national government in the three months ended March 31, 2015, which grew 17.7% compared to the same period in 2014, primarily due to an increase in expenditures in construction, recovery and improvement of roads in connection with projects of the Ministry of Transport and Communications. Private investment decreased 3.9% in the three months ended March 31, 2015 as compared to the same period in 2014, primarily due to a decrease in the exchange terms of exports relative to imports and the worsening of economic expectations, as well as a slower than expected progress in investment projects particularly in the mining sector. Total gross investment increased 0.1% during the three months ended March 31, 2015 compared to the same period in 2014.
The following tables set forth GDP by expenditure for the periods presented.
1
Gross Domestic Product by Expenditure
(in millions of U.S. dollars, at current prices)
| For the three months ended March 31, | ||||||||
| 2014(1) | 2015(1) | |||||||
Government consumption | 5,585 | 5,544 | ||||||
Private consumption | 30,967 | 30,333 | ||||||
Gross investment: | ||||||||
Public sector | 1,771 | 1,251 | ||||||
Private sector | 10,096 | 9,433 | ||||||
Change in inventories | 99 | 921 | ||||||
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Total gross investment | 11,966 | 11,606 | ||||||
Exports of goods and services | 11,174 | 9,539 | ||||||
Imports of goods and services | 11,834 | 11,143 | ||||||
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Net (exports) | (660 | ) | (1,604 | ) | ||||
GDP | 47,858 | 45,879 | ||||||
| (1) | Preliminary data. |
Source: Central Bank.
In the three months ended March 31, 2015 and compared to the three months ended March 31, 2014, public savings reached 8.2% and 9.9% of GDP, respectively, due to an increase in current revenues, while private savings was 11.3% of GDP for the three months ended March 31, 2015 compared to 10.5% for the comparable period of 2014.
In the three months ended March 31, 2015, domestic savings decreased to 19.6% of GDP from 20.4% of GDP in the three months ended March 31, 2014, due to an increase in public and private consumption.
External savings, as a percentage of GDP, increased to 5.7% of GDP in the three months ended March 31, 2015 from 4.6% of GDP in the three months ended March 31, 2014.
Domestic investment as a percentage of GDP increased to 25.3% in the three months ended March 31, 2015 from 25.0% in the three months ended March 31, 2014, primarily due to an increase in change in inventories.
2
Gross Domestic Product by Expenditure
(as a percentage of total GDP, at current prices)
| For the three months ended March 31, | ||||||||
| 2014(1) | 2015(1) | |||||||
Government consumption | 11.7 | 12.1 | ||||||
Private consumption | 64.7 | 68.1 | ||||||
Gross investment: | ||||||||
Public sector | 3.7 | 2.7 | ||||||
Private sector | 21.1 | 20.6 | ||||||
Change in inventories | 0.2 | 2.0 | ||||||
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Total gross investment | 25.0 | 25.3 | ||||||
Exports of goods and services | 23.3 | 20.8 | ||||||
Imports of goods and services | 24.7 | 24.3 | ||||||
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Net (exports) | (1.4 | ) | (35 | ) | ||||
GDP | 100.0 | 100.0 | ||||||
| (1) | Weekly Note (Nota Semanal) No. 19-2015. |
Source: Central Bank.
Investment and Savings
(as a percentage of current GDP)
| For the three months ended March 31, | ||||||||
| 2014(1) | 2015(1) | |||||||
Domestic savings: | ||||||||
Public savings | 9.9 | 8.2 | ||||||
Private savings | 10.5 | 11.3 | ||||||
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Total domestic savings | 20.4 | 19.6 | ||||||
External savings | 4.6 | 5.7 | ||||||
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Total savings | 25.0 | 25.3 | ||||||
Domestic investment | 25.0 | 25.3 | ||||||
| (1) | Weekly Note (Nota Semanal) No. 19-2015. |
Source: Central Bank.
For the three months ended March 31, 2015, per capita GDP decreased 5.2%, compared to same period in 2014 to U.S.$5,888.8 from U.S.$6,211.6.
Principal Sectors of the Economy
The principal economic activities in Peru are services (including wholesale and retail trade, transportation and tourism), manufacturing, agriculture and livestock, and mining and hydrocarbons.
3
Gross Domestic Product by Sector
(in millions of nuevos soles, at constant 2007 prices)
| For the three months ended March 31, | ||||||||
| 2014(1) | 2015(1) | |||||||
Primary production: | ||||||||
Agriculture and livestock(2) | 5,560 | 5,585 | ||||||
Fishing | 404 | 366 | ||||||
Mining and hydrocarbons(3) | 13,183 | 13,717 | ||||||
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Total primary production | 19,146 | 19,669 | ||||||
Secondary production: | ||||||||
Manufacturing | 16,707 | 15,837 | ||||||
Construction | 6,841 | 6,376 | ||||||
Electricity and water | 2,026 | 2,120 | ||||||
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Total secondary production | 25,574 | 24,333 | ||||||
Services: | ||||||||
Wholesale and retail trade | 12,134 | 12,573 | ||||||
Other services(4) | 53,530 | 55,721 | ||||||
Total services | 65,664 | 68,294 | ||||||
Total GDP | 110,384 | 112,295 | ||||||
| (1) | Preliminary data. |
| (2) | Includes forestry. |
| (3) | Includes non-metallic mining. |
| (4) | Includes taxes on products and import duties. |
Source: Central Bank.
The following tables set forth the distribution of GDP in the Peruvian economy, indicating the percentage contribution to GDP and the growth rate for the periods shown for each sector, in each case compared to the previous corresponding period.
4
Gross Domestic Product by Sector
(as a percentage of GDP, at constant 2007 prices)
| For the three months ended March 31, | ||||||||
| 2014(1) | 2015(1) | |||||||
Primary production: | ||||||||
Agriculture and livestock(2) | 5.0 | 5.0 | ||||||
Fishing | 0.4 | 0.3 | ||||||
Mining and hydrocarbons(3) | 11.9 | 12.2 | ||||||
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Total primary production | 17.3 | 17.5 | ||||||
Secondary production: | ||||||||
Manufacturing | 15.1 | 14.1 | ||||||
Construction | 6.2 | 5.7 | ||||||
Electricity and water | 1.8 | 1.9 | ||||||
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Total secondary production | 23.2 | 21.7 | ||||||
Services: | ||||||||
Wholesale and retail trade | 11.0 | 11.2 | ||||||
Other services(4) | 48.5 | 49.6 | ||||||
Total services | 59.5 | 60.8 | ||||||
Total GDP | 100.0 | 100.0 | ||||||
| (1) | Preliminary data. |
| (2) | Includes forestry. |
| (3) | Includes non-metallic mining. |
| (4) | Includes taxes on products and import duties. |
Source: Central Bank.
During the three months ended March 31, 2015, GDP grew 1.7% compared to the same period in 2014. This increase was primarily driven by growth in the commerce, mining and fuel, financial services, business services, communications, and utility services (including electricity, water and gas).
Primary Production
During the three months ended March 31, 2015, primary production increased by 2.7%, due to increased production in agriculture and livestock. In terms of contribution to GDP, agriculture and livestock accounted for 5.0% in the three months ended March 31, 2015. In total, the primary sector contributed 17.5% to GDP in the three months ended March 31, 2015.
Agriculture and Livestock
The Peruvian agriculture and livestock sector is dominated by small-scale producers. The sector contributed 5.0% and 5.0% to GDP in the three months ended March 31, 2015 and 2014, respectively.
Peru’s main agricultural products are potatoes, corn, rice, coffee, fruits and vegetables, which together accounted for approximately 60.1% and 60.7% of agricultural production in the three months ended March 31, 2015 and 2014.
Peru’s main agricultural export products are coffee, cotton and sugar, which together accounted for approximately 6.8% and 7.3% of agricultural production in the three months ended March 31, 2015 and 2014, respectively.
5
During the three months ended March 31, 2015, the agriculture and livestock sector has changed very little compared to the first three months ended March 31, 2014, contributing 5.0% to GDP, due primarily to unfavorable climatic conditions, scarcity of hydrological resources, and the presence of yellow rust, which has attenuated the production of mangoes, coffee, paddy rice, alfalfa, cotton, avocados, grapes, cocoa, potatoes, poultry and eggs.
Fishing
Fishing is a small part of the Peruvian economy, contributing 0.3% and 0.4% to GDP in the three months ended March 31, 2015 and 2014. Traditional fish products, however, are Peru’s fourth largest single export after mining and petroleum and natural gas, accounting for 6.0% and 10.4% of exports in the three months ended March 31, 2015 and 2014, respectively, considering both traditional (fish meal and fish oil) and non-traditional exports (frozen crustaceans and mollusks, frozen fish, and prepared and canned food).
In the three months ended March 31, 2015, the fishing sector decreased by 9.2% compared to the same period in 2014, mainly due to a decrease in the production of seafood products.
Mining and Hydrocarbons
The mining and hydrocarbons sector grew in the three months ended March 31, 2015 by 4.1% compared to the same period in 2014 due to increased hydrocarbons extraction offset by a decrease in mining production.
Mining. Peru is a leading producer of gold, silver, tin, copper, lead and zinc in Latin America. Although mining constitutes a small part of the country’s GDP, contributing on average 10.0% to GDP in the three months ended March 31, 2015, mineral products are Peru’s main export and they accounted for 56.0% and 50.5% of total exports by value in the three months ended March 31, 2015 and 2014, respectively. Gold and copper accounted for 20.9% (U.S.$1.7 billion) and 21.6% (U.S.$1.8 billion) of total exports by value, respectively, during the three months ended March 31, 2015 and 16.9% (U.S.$1.6 billion) and 20.8% (U.S.$2.0 billion) of total exports by value, respectively, during the same period in 2014. In addition, copper accounted for 38.6% of total mining exports in the three months ended March 31, 2015 and 41.2% in the three months ended March 31, 2014.
Hydrocarbons. In the three months ended March 31, 2015, the hydrocarbon sector decreased 4.2% as compared to the same period in 2014, mainly due to higher levels of production of liquid hydrocarbons and natural gas.
Secondary Production
Manufacturing
In the three months ended March 31, 2015, the manufacturing sector decreased by 5.2% as compared to the three months ended March 31, 2014, primarily due to non-primary manufacturing activity, which decreased by 3.1% and primary manufacturing activity, which decreased by 11.1%.
Primary manufacturing. In the three months ended March 31, 2015, the primary manufacturing sector decreased by 11.1% compared to the same period in 2014, due in part to a decrease in the production of the fishing industry, non-ferrous precious metals, petroleum refining products, peeled rice, and sugar refining.
Non-primary manufacturing. In the three months ended March 31, 2015, non-primary manufacturing decreased 3.1%, as compared to the same period in 2014, mainly due to a decrease in demand for capital and consumer goods (caused by the decrease in foreign demand).
6
Construction
The construction sector decreased 6.8% in the three months ended March 31, 2015 and contributed 5.7% to GDP. This growth was associated with internal consumption of cement and an increase in projects for basic services and improvements to the nationwide highway network.
Electricity and Water
Electricity. In the three months ended March 31, 2015, the electricity sub-sector grew 5.2% due to an increase in the production of electricity.
Water. In the three months ended March 31, 2015, water grew 2.3% due to the increase in the production volumes of SEDAPAL.
Services
Wholesale and Retail Trade
In the three months ended March 31, 2015, wholesale and retail trade increased by 3.6% due primarily to wholesale and retail commerce and the maintenance and repair of automobiles.
Other Services
The private sector in Peru offers a variety of services constituting the “Other Services” sector of Peru’s GDP that in aggregate is an important part of the Peruvian economy. The Other Services sector includes services to companies, government services, transportation and communication, healthcare and education services, tourism and financial services. In aggregate, this sector grew 4.1% in the three months ended March 31, 2015, compared to the same period in 2014.
As a result, the “Other Services” sector accounted for 49.6% of GDP in the three months ended March 31, 2015, an increase of 1.1 percentage points from the same period in 2014.
Public Administration
Based on an audit undertaken of the public sector, the total number of public employees as of March 31, 2015 was 1.8 million, of which 39.6% are active workers, 47.2% are pensioners and 13.2% are non-personal service workers. Most public employees are placed in regional governments, economy and finance and education ministries.
Privatization and Concessions
In the three months ended March 31, 2015, concessions reached U.S. $36.8 million in projected investments. Significant investment was made in the energy sector.
Balance of Payments and Foreign Trade
Balance of Payments
The following table provides information, based on period-end exchange rates, regarding Peru’s balance of payments for the periods presented.
7
Balance of Payments
(in millions of U.S. dollars, at current prices)
| For the three months ended March 31, | ||||||||
| 2014 | 2015 | |||||||
Current account: | ||||||||
Trade balance: | ||||||||
Exports (FOB)(1) | 9,780 | 8,091 | ||||||
Imports (FOB)(1) | (9,959 | ) | (9,182 | ) | ||||
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Trade balance | (180 | ) | (1,091 | ) | ||||
Services, net | (474 | ) | (500 | ) | ||||
Of which: | ||||||||
Net income from tourism(2) | 314 | 321 | ||||||
Net income from transportation(3) | (341 | ) | (343 | ) | ||||
Financial and investment income, net(4) | (2,435 | ) | (1,792 | ) | ||||
Current transfers, net | 891 | 760 | ||||||
Of which: | ||||||||
Workers’ remittances | 633 | 627 | ||||||
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Current account balance | (2,198 | ) | (2,623 | ) | ||||
Capital account: | ||||||||
Foreign direct investment | 2,485 | 2,242 | ||||||
Portfolio investment | (61 | ) | (5 | ) | ||||
Other medium and long-term capital(5) | (599 | ) | 612 | |||||
Of which: | ||||||||
Disbursements to the public sector | (566 | ) | 1,288 | |||||
Other capital, including short-term capital | (862 | ) | 203 | |||||
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Capital account balance | 962 | 3,052 | ||||||
Errors and omissions(6) | 385 | (872 | ) | |||||
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Balance of payments | (851 | ) | (443 | ) | ||||
Financing: | ||||||||
Change in gross Central Bank reserves(7) | 850 | 443 | ||||||
Exceptional financing, net | 1 | — | ||||||
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Total financing | 851 | 443 | ||||||
Memorandum item: | ||||||||
Current account balance (deficit) (as a % of GDP) | (4.6 | ) | (5.7 | ) | ||||
| (1) | Based on customs declarations, records of temporary admissions, free-trade zone imports, grants and other adjustments. |
| (2) | Based on a survey of tourists. Income from tourism represents the total expenditure by a tourist multiplied by the total number of tourists. |
| (3) | Includes freight services, passenger transportation and port expenses of ships and airplanes. |
| (4) | Includes interest payments. |
| (5) | Includes debt amortization payments. |
| (6) | Represents errors and omissions from double-entry accounting resulting from incomplete or overlapping coverage, different prices and incomplete times of recording and conversion practices. |
| (7) | Refers to changes in reserve used to finance balance of payments and corresponds to net international reserves excluding the use of IMF resources. |
Source: Central Bank.
8
Current Account
Peru’s current account registered a deficit of U.S.$2.6 billion, or 5.7% of GDP, primarily due to a decrease in the trade balance to U.S.$1.1 billion, in the three months ended March 31, 2015, compared to the same period in 2014.
Trade Balance
In the three months ended March 31, 2015, exports decreased by 17.3% compared to the same period in 2014, primarily due to a lower number of shipments of mining, oil and natural gas products, as well as the contraction in traditional exports to the United States, China and Japan and non-traditional exports to Colombia, China and Brazil. Imports decreased by 7.8% in the three months ended March 31, 2015, compared to the same period in 2014, principally as a result of imports of capital goods, transportation equipment, inputs and fuel.
In the three months ended March 31, 2015 and 2014, Peru’s exports consisted primarily of exports of:
| • | traditional mineral exports, such as gold, silver, copper, zinc and lead, valued at U.S. $4.5 billion during the three months ended March 31, 2015, representing 56.0% of total exports in such period, and valued at U.S. $4.9 billion in the three months ended March 31, 2014, representing 50.5% of total exports for such period; |
| • | petroleum and derivative products valued at U.S. $0.6 billion during the three months ended March 31, 2015, representing 7.6% of total exports in such period, and valued at U.S. $1.1 billion in the three months ended March 31, 2014, representing 11.7% of total exports for such period; |
| • | traditional fishing exports, such as fishmeal and fish oil, valued at U.S. $0.2 billion during the three months ended March 31, 2015, representing 2.2% of total exports in such period, and valued at U.S. $0.7 billion in the three months ended March 31, 2014, representing 7.0% of total exports for such period; |
| • | non-traditional textile exports, such as textile fibers and cloth, valued at U.S.$0.3 million during the three months ended March 31, 2015, representing 4.2% of total exports in such period, and valued at U.S. $0.4 million in the three months ended March 31, 2014, representing 4.6% of total exports for such period; and |
| • | non-traditional agriculture and livestock exports valued at U.S. $1.0 billion during the three months ended March 31, 2015, representing 12.9% of total exports in such period, and valued at U.S. $1.0 billion in the three months ended March 31, 2014, representing 10.2% of total exports for such period. |
The following tables provide further information on exports for the periods presented.
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Exports
(in millions of U.S. dollars, at current prices)
| For the three months ended March 31, | ||||||||
| 2014 | 2015 | |||||||
Traditional: | ||||||||
Fishing | 689 | 175 | ||||||
Agricultural | 91 | 46 | ||||||
Mineral | 4,938 | 4,534 | ||||||
Petroleum and derivatives | 1,142 | 619 | ||||||
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Total traditional | 6,860 | 5,374 | ||||||
Non-traditional: | ||||||||
Agriculture and livestock | 998 | 1,047 | ||||||
Fishing | 332 | 305 | ||||||
Textiles | 447 | 343 | ||||||
Timbers and papers, and manufactures | 108 | 91 | ||||||
Chemical | 373 | 351 | ||||||
Non-metallic minerals | 156 | 168 | ||||||
Basic metal industries and jewelry | 285 | 251 | ||||||
Fabricated metal products and machinery | 130 | 105 | ||||||
Other products(1) | 31 | 35 | ||||||
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Total non-traditional | 2,860 | 2,697 | ||||||
Other products(2) | 60 | 20 | ||||||
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Total exports | 9,780 | 8,091 | ||||||
| (1) | Includes leather and handcrafts. |
| (2) | Includes the sale of fuel and food to foreign vessels and the repair of foreign vessels. |
Source: Central Bank.
Exports
(as a percentage of total exports, at current prices)
| For the three months ended March 31, | ||||||||
| 2014 | 2015 | |||||||
Traditional: | ||||||||
Fishing | 7.0 | 2.2 | ||||||
Agricultural | 0.9 | 0.6 | ||||||
Mineral | 50.5 | 56.0 | ||||||
Petroleum and derivatives | 11.7 | 7.7 | ||||||
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Total traditional | 70.1 | 66.4 | ||||||
Non-traditional: | ||||||||
Agriculture and livestock | 10.2 | 12.9 | ||||||
Fishing | 3.4 | 3.8 | ||||||
Textiles | 4.6 | 4.2 | ||||||
Timbers and papers, and manufactures | 1.1 | 1.1 | ||||||
Chemical | 3.8 | 4.3 | ||||||
Non-metallic minerals | 1.6 | 2.1 | ||||||
Basic metal industries and jewelry | 2.9 | 3.1 | ||||||
Fabricated metal products and machinery | 1.3 | 1.3 | ||||||
Other products(1) | 0.3 | 0.4 | ||||||
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Total non-traditional | 29.2 | 33.3 | ||||||
Other: | ||||||||
Other products(2) | 0.6 | 0.2 | ||||||
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Total exports | 100.0 | 100.0 | ||||||
| (2) | Includes leather and handcrafts. |
| (3) | Includes the sale of fuel and food to foreign vessels and the repair of foreign vessels. |
Source: Central Bank.
10
In 2014 and 2015, Peru’s imports consisted primarily of imports of:
| • | intermediate goods, such as fuels and raw materials for agricultural and industrial production, valued at U.S. $4.0 billion in the three months ended March 31, 2014, representing 43.6% of total imports for such period, and valued at U.S. $4.7 billion in the three months ended March 31, 2015, representing 47.0% of total imports for such period; |
| • | capital goods, such as transportation and building equipment, valued at U.S. $2.9 billion in the three months ended March 31, 2014, representing 32.1% of total imports for such period, and valued at U.S. $3.2 billion in the three months ended March 31, 2015, representing 31.9% of total imports for such period; and |
| • | consumer goods valued at U.S. $2.1 billion in the three months ended March 31, 2014, representing 23.0% of total imports for such period, and valued at U.S. $2.1 billion in the three months ended March 31, 2015, representing 20.9% of total imports for such period. |
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The following tables provide further information regarding imports for the periods presented.
Imports
(in millions of US dollars, at current prices)
| For the three months ended March 31, | ||||||||
| 2014 | 2015 | |||||||
Consumer goods: | ||||||||
Durable goods | 951 | 953 | ||||||
Non-durable goods | 1,127 | 1,160 | ||||||
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Total consumer goods | 2,078 | 2,113 | ||||||
Intermediate goods: | ||||||||
Petroleum products, lubricants | 1,600 | 827 | ||||||
Raw materials for agriculture | 279 | 318 | ||||||
Raw materials for manufacturing | 2,798 | 2,856 | ||||||
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Total intermediate goods | 4,677 | 4,000 | ||||||
Capital goods: | ||||||||
Construction materials | 355 | 345 | ||||||
For agriculture | 27 | 34 | ||||||
For manufacturing | 2,132 | 2,002 | ||||||
Transportation equipment | 659 | 563 | ||||||
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Total capital goods | 3,173 | 2,944 | ||||||
Other(1) | 31 | 125 | ||||||
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Total imports | 9,959 | 9,182 | ||||||
Memorandum items: | ||||||||
Temporal admission imports(2) | 83 | 77 | ||||||
Imports into free trade zone(3) | 47 | 49 | ||||||
| (1) | Includes the donation of goods, the purchase of fuels and Peruvian foodstuffs and the repair of capital goods in the exterior such as other goods not falling into any one of the classifications used. |
| (2) | Imports that must be processed and exported within a definite period of time and are not subject to tariffs. |
| (3) | Imports through the Special Zone of Tacna, which is primarily dedicated to the assembly of motor vehicles. Peru has five free trade zones, but only the Tacna zone is economically active. |
Source: Central Bank.
12
Imports
(as a percentage of total imports, at current prices)
| For the three months ended March 31, | ||||||||
| 2014 | 2015 | |||||||
Consumer goods: | ||||||||
Durable goods | 9.5 | 10.4 | ||||||
Non-durable goods | 11.3 | 12.6 | ||||||
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Total consumer goods | 20.9 | 23.0 | ||||||
Intermediate goods: | ||||||||
Petroleum products, lubricants | 16.1 | 9.0 | ||||||
Raw materials for agriculture | 2.8 | 3.5 | ||||||
Raw materials for manufacturing | 28.1 | 31.1 | ||||||
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Total intermediate goods | 47.0 | 43.6 | ||||||
Capital goods: | ||||||||
Construction materials | 3.6 | 3.8 | ||||||
For agriculture | 0.3 | 0.4 | ||||||
For manufacturing | 21.4 | 21.8 | ||||||
Transportation equipment | 6.6 | 6.1 | ||||||
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Total capital goods | 31.9 | 32.1 | ||||||
Other(1) | 0.3 | 1.4 | ||||||
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Total import | 100.0 | 100.0 | ||||||
Memorandum items: | ||||||||
Temporal admission imports(2) | 0.8 | 0.8 | ||||||
Imports into free trade zone(3) | 0.5 | 0.5 | ||||||
| (1) | Includes the donation of goods, the purchase of fuels and Peruvian foodstuffs and the repair of capital goods in the exterior such as other goods not falling into any one of the classifications used. |
| (2) | Imports that must be processed and exported within a definite period of time and are not subject to tariffs. |
| (3) | Imports through the Special Zone of Tacna, which is primarily dedicated to the assembly of motor vehicles. Peru has five free trade zones but only the Tacna zone is economically active. |
Source: Central Bank.
Capital Account
The capital account reflects foreign direct investment and monetary flows into and out of a nation’s financial markets.
For the three months ended March 31, 2015, the capital account balance increased by 217.3%, compared to the same period ended March 31, 2014 to a surplus of U.S. $3.0 billion, compared to the same period ended March 31, 2014. This increase in the three months ended March 31, 2015 was due primarily to major levels of other medium- and long-term capital and other capital including short term capital reduced investment in sovereign bonds by non-residents, and a reduction in the balance of bank liabilities abroad, in the context of greater levels of liquidity in dollars and reduced demand for assets denominated in dollars.
13
Geographic Distribution of Exports
(as a percentage of total exports, at current prices)
| For the three months ended March 31, | ||||||||
| 2014 | 2015 | |||||||
United States | 16.1 | 14.4 | ||||||
Canada | 6.2 | 8.4 | ||||||
Mexico | 1.9 | 2.1 | ||||||
|
|
|
| |||||
Total North America | 24.4 | 25.1 | ||||||
Brazil | 4.0 | 4.6 | ||||||
Colombia | 3.1 | 2.7 | ||||||
Chile | 3.7 | 3.2 | ||||||
Venezuela | 1.2 | 0.7 | ||||||
Other | 9.9 | 9.1 | ||||||
|
|
|
| |||||
Total Latin America and the Caribbean | 21.9 | 20.4 | ||||||
United Kingdom | 1.4 | 0.8 | ||||||
Switzerland | 6.1 | 8.5 | ||||||
Germany | 2.9 | 2.1 | ||||||
Spain | 3.4 | 3.7 | ||||||
Other | 7.8 | 8.9 | ||||||
|
|
|
| |||||
Total Europe | 21.5 | 24.1 | ||||||
Japan | 5.0 | 3.5 | ||||||
China | 19.8 | 18.8 | ||||||
Other | 5.9 | 6.2 | ||||||
|
|
|
| |||||
Total Asia | 30.7 | 28.5 | ||||||
Africa and others | 1.6 | 1.9 | ||||||
|
|
|
| |||||
Total exports | 100.0 | 100.0 | ||||||
Source: Central Bank.
Geographic Distribution of Imports
(as a percentage of total imports, at current prices)
| For the three months ended March 31, | ||||||||
| 2014 | 2015 | |||||||
United States | 22.4 | 20.7 | ||||||
Canada | 1.6 | 2.0 | ||||||
Mexico | 4.1 | 4.6 | ||||||
|
|
|
| |||||
Total North America | 28.2 | 27.4 | ||||||
Brazil | 4.1 | 4.1 | ||||||
Colombia | 3.0 | 3.2 | ||||||
Chile | 2.7 | 2.9 | ||||||
Venezuela | 0.1 | 0.1 | ||||||
Other | 11.2 | 7.6 | ||||||
|
|
|
| |||||
Total Latin America and the Caribbean | 21.0 | 17.8 | ||||||
United Kingdom | 0.7 | 0.8 | ||||||
Switzerland | 0.7 | 0.5 | ||||||
Germany | 4.0 | 2.9 | ||||||
Spain | 2.2 | 1.6 | ||||||
Other | 6.9 | 6.1 | ||||||
|
|
|
| |||||
Total Europe | 14.5 | 11.8 | ||||||
Japan | 2.5 | 2.6 | ||||||
China | 19.4 | 23.8 | ||||||
Other | 10.8 | 13.2 | ||||||
|
|
|
| |||||
Total Asia | 32.7 | 39.6 | ||||||
Africa and others | 3.6 | 3.4 | ||||||
|
|
|
| |||||
Total imports | 100.0 | 100.0 | ||||||
Source: Central Bank.
14
The Monetary System
Monetary Policy
The inflation rate for the three months ended March 31, 2015 was 3.02% (the Central Bank’s target annual inflation rate for the period was set between 1% and 3%). The Central Bank continues to pursue monetary policies aimed at ensuring that actual inflation remains within the target range. Because of the reduction in inflationary pressure resulting from this more stable price environment, the government believes that the inflation rate will converge to the target rate set by the Central Bank.
The Central Bank maintained the reference rate at 3.25% as of March 31, 2015.
In June 2014, the Central Bank lowered the reserve requirements for financial institutions as of June 2014 to 12% and 45% on deposits for Nuevos Soles and U.S. Dollars, respectively.
Liquidity and Credit Aggregates
The following table presents the composition of the monetary base and international reserves as of the dates shown.
Monetary Base and Central Bank’s International Reserves
(in millions of U.S. dollars, at current prices)
| As of March 31, | ||||||||
| 2014 | 2015 | |||||||
Currency in circulation and cash in vaults at banks | 14,261 | 14,546 | ||||||
Commercial bank deposits at the Central Bank | 2,294 | 905 | ||||||
|
|
|
| |||||
Monetary base | 16,555 | 15,450 | ||||||
Gross international reserves | 65,000 | 61,384 | ||||||
Net international reserves | 64,954 | 61,323 | ||||||
Source: Central Bank.
Net international reserves decreased from approximately U.S.$65.0 billion as of March 31, 2014, to approximately U.S.$61.3 billion as of March 31, 2015.
15
The following tables present liquidity and credit aggregates, and changes in selected monetary indicators as of the dates shown.
Liquidity and Credit
(in millions of U.S. dollars, at current prices)
| As of March 31, 2015 | ||||
Monetary aggregates | ||||
Currency in circulation | 11,921 | |||
M1 | 20,868 | |||
M2 | 46,747 | |||
M3 | 71,962 | |||
Credit by sector(1) | ||||
Public sector (Net)(2) | (25,389 | ) | ||
Private sector | 74,786 | |||
|
| |||
Total credit aggregates | 49,398 | |||
Deposits | ||||
Local currency(3) | 33,706 | |||
Foreign currency(4) | 25,081 | |||
|
| |||
Total deposits | 58,787 | |||
|
| |||
| (1) | Includes securities offerings and cash advances from checking accounts of depository corporations. |
| (2) | Net claims on public sector of depository corporations. |
| (3) | Includes sight deposits, saving deposits, time deposits and other certificates in domestic currency of depository corporations. |
| (4) | Includes demand deposits, savings deposits and time deposits in foreign currency of depository corporations. |
Source: Central Bank.
Public Sector Finances
In the three months ended March 31, 2015, the non-financial public sector surplus was U.S. $2.4 billion, or 5.1% of GDP. This surplus was largely attributable to increased current revenues driven by non-financial public sector spending.
The following tables provide information on the non-financial public sector accounts for the periods presented.
16
Consolidated Accounts of the Non-Financial Public Sector (NFPS)
(in millions of U.S. dollars, at current prices)
| For the three months ended March 31, | ||||||||
| 2014 | 2015(1) | |||||||
Primary balance: | ||||||||
Central government | 2,705 | 1,497 | ||||||
Decentralized agencies | 228 | 175 | ||||||
Local governments | 663 | 1,133 | ||||||
State-owned enterprises | (26 | ) | 251 | |||||
|
|
|
| |||||
Primary NFPS | 3,569 | 3,055 | ||||||
Interest payments: | ||||||||
External debt | 220 | 213 | ||||||
Domestic debt | 480 | 484 | ||||||
|
|
|
| |||||
Total interest payments | 699 | 696 | ||||||
|
|
|
| |||||
Overall NFPS | 2,879 | 2,359 | ||||||
Financing: | ||||||||
External | 110 | 151 | ||||||
Domestic | (2,982 | ) | (2,536 | ) | ||||
Privatization | 2 | 27 | ||||||
|
|
|
| |||||
Total financing | (2,870 | ) | (2,359 | ) | ||||
| (1) | Preliminary data. |
Source: Central Bank.
Consolidated Accounts of the Non-Financial Public Sector (NFPS)
(as a percentage of GDP, at current prices)
| For the three months ended March 31, | ||||||||
| 2014 | 2015(1) | |||||||
Primary balance: | ||||||||
Central government | 5.7 | 3.3 | ||||||
Decentralized agencies | 0.5 | 0.4 | ||||||
Local governments | 1.4 | 2.5 | ||||||
State-owned enterprises | (0.1 | ) | 0.5 | |||||
|
|
|
| |||||
Primary NFPS | 7.5 | 6.7 | ||||||
Interest payments: | ||||||||
External debt | 0.5 | 0.5 | ||||||
Domestic debt | 1.0 | 1.1 | ||||||
|
|
|
| |||||
Total interest payments | 1.5 | 1.5 | ||||||
|
|
|
| |||||
Overall NFPS | 6.0 | 5.1 | ||||||
Financing: | ||||||||
External | 0.2 | 0.3 | ||||||
Domestic | (6.2 | ) | (5.5 | ) | ||||
Privatization | — | 0.1 | ||||||
|
|
|
| |||||
Total financing | (6.0 | ) | (5.1 | ) | ||||
| (1) | Preliminary data. |
Source: Central Bank.
17
Central Government
In the three months ended March 31, 2015, total government revenues were U.S.$8.7 billion, or 19% of GDP, compared to U.S. $10 billion, or 20.9% of GDP, in the same period in 2014.
In the three months ended March 31, 2015, total government expenditures were U.S.$7.2 billion, or 15.8% of GDP, compared to U.S. $7.3 billion, or 15.3% of GDP, in the same period in 2014.
In the three months ended March 31, 2015, the primary surplus was U.S. $1.5 billion, or 3.3% of GDP, compared to U.S. $2.7 billion, or 5.7% of GDP, in the same period in 2014.
18
The following tables provide information regarding government accounts for the periods presented.
Central Government Accounts
(in millions of U.S. dollars, at current prices)
| For the three months ended March 31, | ||||||||
| 2014(1) | 2015(1) | |||||||
Fiscal revenue: | ||||||||
Current revenue: | ||||||||
Tax revenue: | ||||||||
Income tax | 4,048 | 3,494 | ||||||
Capital gains tax | — | — | ||||||
Taxes on goods and services | 5,034 | 4,693 | ||||||
General Sales Tax | 4,561 | 4,245 | ||||||
Excise taxes | 473 | 449 | ||||||
|
|
|
| |||||
Import tariffs | 142 | 141 | ||||||
Other taxes | (597 | ) | (705 | ) | ||||
|
|
|
| |||||
Total tax revenue | 8,627 | 7,623 | ||||||
Non-tax revenue(2) | 1,348 | 1,004 | ||||||
|
|
|
| |||||
Total current revenue | 9,975 | 8,627 | ||||||
Capital revenue | 27 | 113 | ||||||
|
|
|
| |||||
Total fiscal revenue | 10,001 | 8,740 | ||||||
Expenditures: | ||||||||
Current non-financial expenditures: | ||||||||
Wages and salaries | 2,169 | 2,153 | ||||||
Goods and services | 1,426 | 1,472 | ||||||
Current transfers | 1,884 | 1,746 | ||||||
|
|
|
| |||||
Total current non-financial expenditures | 5,480 | 5,371 | ||||||
Capital expenditures: | ||||||||
Fixed investment | 970 | 745 | ||||||
Other | 847 | 1,127 | ||||||
Of which: | ||||||||
Capital transfers | 756 | 840 | ||||||
Total capital expenditures | 1,817 | 1,872 | ||||||
|
|
|
| |||||
Total expenditures | 7,297 | 7,243 | ||||||
Fiscal balance: | ||||||||
Primary fiscal balance | 2,705 | 1,497 | ||||||
Interest | 645 | 647 | ||||||
|
|
|
| |||||
Overall fiscal balance | 2,059 | 850 | ||||||
Financing: | ||||||||
Foreign financing | (81 | ) | 169 | |||||
Domestic financing | (1,981 | ) | (1,046 | ) | ||||
Privatization | 2 | 27 | ||||||
|
|
|
| |||||
Total financing | (2,059 | ) | (850 | ) | ||||
| (1) | Preliminary data. |
| (2) | Includes transfers from state-owned enterprises and royalties from petroleum companies. |
Source: Central Bank.
19
Central Government Accounts
(as a percentage of GDP, at current prices)
| For the three months ended March 31, | ||||||||
| 2014(1) | 2015(1) | |||||||
Fiscal revenue: | ||||||||
Current revenue: | ||||||||
Tax revenue: | ||||||||
Income Tax | 8.5 | 7.6 | ||||||
Capital gains tax | — | — | ||||||
Taxes on goods and services: | 10.5 | 10.2 | ||||||
General Sales Tax | 9.5 | 9.2 | ||||||
Excise taxes | 1.0 | 1.0 | ||||||
Import tariffs | 0.3 | 0.3 | ||||||
Other taxes | (1.2 | ) | (1.5 | ) | ||||
|
|
|
| |||||
Total tax revenue | 18.0 | 16.6 | ||||||
Non-tax revenue(2) | 2.8 | 2.2 | ||||||
|
|
|
| |||||
Total current revenue | 20.9 | 18.8 | ||||||
Capital revenue | 0.1 | 0.2 | ||||||
|
|
|
| |||||
Total fiscal revenue | 20.9 | 19.0 | ||||||
Expenditures: | ||||||||
Current non-financial expenditures: | ||||||||
Wages and salaries | 4.5 | 4.7 | ||||||
Goods and services | 3.0 | 3.2 | ||||||
Current transfers | 3.9 | 3.8 | ||||||
|
|
|
| |||||
Total current non-financial expenditures | 11.5 | 11.7 | ||||||
Capital expenditures: | ||||||||
Fixed investment | 2.0 | 1.6 | ||||||
Other | 1.8 | 2.5 | ||||||
Of which: | ||||||||
Capital transfers | 1.6 | 1.8 | ||||||
Total capital expenditures | 3.8 | 4.1 | ||||||
|
|
|
| |||||
Total expenditures | 15.3 | 15.8 | ||||||
Fiscal balance: | ||||||||
Primary fiscal balance | 5.7 | 3.3 | ||||||
Interest | 1.3 | 1.4 | ||||||
|
|
|
| |||||
Overall fiscal balance | 4.3 | 1.9 | ||||||
Financing: | ||||||||
Foreign financing | (0.2 | ) | 0.4 | |||||
Domestic financing | (4.1 | ) | (2.3 | ) | ||||
Privatization | — | 0.1 | ||||||
|
|
|
| |||||
Total financing | (4.3 | ) | (1.9 | ) | ||||
| (1) | Preliminary data. |
| (2) | Includes transfers from state-owned enterprises and royalties from petroleum companies. |
Source: Central Bank.
20
Tax Regime
All government taxes in Peru are collected by the Superintendencia Nacional de Administración Tributaria, or SUNAT. SUNAT’s budget is determined primarily through a percentage-based funding mechanism that provides the agency with 1.6% of its domestic tax collections and with 1.5% of import tariffs.
The following table presents the composition of Peru’s tax revenues for the periods presented.
Tax Revenue of Peru (Central Government)
(as a percentage of total tax revenue)
| 2014(1) | 2015(1) | |||||||
Income Tax | ||||||||
Individual | 11.3 | 11.8 | ||||||
Corporate | 29.1 | 28.1 | ||||||
Clearing | 6.5 | 5.9 | ||||||
|
|
|
| |||||
Total | 46.9 | 45.8 | ||||||
Taxes on goods and services | ||||||||
Value-Added Tax | 52.9 | 55.7 | ||||||
Fuel tax | 2.1 | 2.2 | ||||||
Other | 3.4 | 3.7 | ||||||
|
|
|
| |||||
Total Excise Tax | 5.5 | 5.9 | ||||||
|
|
|
| |||||
Total taxes on goods and services | 58.3 | 61.6 | ||||||
Import tariffs | 1.6 | 1.8 | ||||||
Other taxes | 5.0 | 4.0 | ||||||
Tax refund | (11.9 | ) | (13.3 | ) | ||||
|
|
|
| |||||
Total | 100.0 | 100.0 | ||||||
| (1) | Reflects adjustments to reconcile estimated income tax withheld with actual income tax liabilities. |
Source: Central Bank.
Public Sector Debt
Peru’s total public sector debt consists of foreign currency-denominated debt and nuevo sol-denominated debt. Peru’s total public external debt consists of loans from foreign creditors to the government, the Central Bank and public sector entities.
External Debt
As of March 31, 2015, taking account of swap agreements, 49.8% of public external debt was denominated in nuevos soles. As of March 31, 2015, public external debt totaled U.S. $19.9 billion, or 9.9% of GDP, compared to U.S. $18.7 billion, or 9.3% of GDP, as of December 31, 2014.
21
The following tables provide further information on public sector external debt as of the dates presented.
Public Sector External Debt
(in millions of U.S. dollars, except for percentages)
| As of March 31, | ||||||||
| 2014 | 2015 | |||||||
Official non-reserves liabilities: | ||||||||
Public sector | 18,739 | 19,947 | ||||||
|
|
|
| |||||
Total official non-reserves liabilities | 18,739 | 19,947 | ||||||
|
|
|
| |||||
Total official liabilities | 18,739 | 19,947 | ||||||
Total public sector external debt as % of GDP(1) | 9.3 | 9.9 | ||||||
Total public sector external debt as % of total exports(1) | 44.5 | 52.7 | ||||||
| (1) | Peru does not include IMF credit use in reports of total public sector external debt. Debt ratios are calculated on the basis of Peru’s total official non-reserve liabilities. |
Source: Central Bank.
Public Sector External Debt, Net of Reserves
(in millions of U.S. dollars, at current prices)
| As March 31, 2015 | ||||
Public sector external debt(1) | 19,947 | |||
Gross international reserves of the Central Bank | (61,384 | ) | ||
|
| |||
Public sector external debt, net of reserves | (41,437 | ) | ||
| (1) | Peru does not include IMF credit use in reports of total public sector external debt. |
Source: Central Bank.
The following table provides information on capital flows from multilateral lenders for the periods presented.
Capital Flows from Multilateral Lenders
(in millions of U.S. dollars)
| As of March 31, | ||||||||
| 2014 | 2015 | |||||||
World Bank: | ||||||||
Disbursements minus principal amortizations | (30.4 | ) | 304.9 | |||||
Disbursements minus principal, interests and commissions | (36.5 | ) | 299.1 | |||||
IADB: | ||||||||
Disbursements minus principal amortizations | (13.0 | ) | (2.0 | ) | ||||
Disbursements minus principal, interests and commissions | (27.0 | ) | (15.6 | ) | ||||
Source: Ministry of Economy and Finance (Dirección Nacional del Endeudamiento Público, or General Bureau of Public Debt and Treasury).
22
In March 2015, Peru issued U.S.$545 million in principal amount of its 5.625% U.S. Dollar-Denominated Global Bonds Due 2050 and approved a contingent credit facility with the World Bank for an amount of U.S.$400 million.
For the three months ended March 31, 2015, disbursements included U.S. $942.8 million for projects primarily in the economy and 2016 pre-financing.
The following tables summarize public sector external debt by creditor for the periods indicated.
23
Public Sector External Debt by Creditor(1)
(in millions of U.S. dollars, at current prices)
| As of March 31, | ||||||||
| 2014 | 2015 | |||||||
Official creditors: | ||||||||
Multilateral debt: | ||||||||
IADB | 1,997 | 2,088 | ||||||
World Bank | 1,794 | 2,143 | ||||||
IFAD(2) | 31 | 27 | ||||||
IMF | — | — | ||||||
OPEC(3) | 1 | — | ||||||
CAF | 1,840 | 1,672 | ||||||
Other(4) | 11 | 5 | ||||||
|
|
|
| |||||
Total multilateral debt | 5,673 | 5,935 | ||||||
Bilateral debt: | ||||||||
Paris Club | 618 | 487 | ||||||
United States (Paris Club) | 45 | 39 | ||||||
Latin America | 4 | 2 | ||||||
East European countries and China | 4 | — | ||||||
Japan (Paris Club) | 1,319 | 1,094 | ||||||
Other countries | — | — | ||||||
|
|
|
| |||||
Total bilateral debt | 1,989 | 1,622 | ||||||
Total official debt | 7,662 | 7,557 | ||||||
Private creditors: | ||||||||
Banking | 534 | 1,152 | ||||||
Suppliers | 23 | 19 | ||||||
|
|
|
| |||||
Total private sector debt | 557 | 1,171 | ||||||
Bonds: | ||||||||
Brady + Global Bonds | 10,520 | 11,219 | ||||||
|
|
|
| |||||
Total bonds | 10,520 | 11,219 | ||||||
|
|
|
| |||||
Total public sector external debt | 18,739 | 19,947 | ||||||
| (1) | Medium- and long-term debt, excluding IMF financing. |
| (2) | Refers to the International Fund for Agricultural Development. |
| (3) | Refers to the Organization of Petroleum Exporting Countries. |
| (4) | Includes European Investment Bank (EIB) and Nordic Investment Bank (NIB). |
Source: Ministry of Economy (Office of Public Credit).
Public Sector External Debt by Creditor(1)
(as a percentage of total public sector external debt)
| As of March 31, 2015 | ||||
Official creditors: | ||||
Multilateral debt: | ||||
IADB | 10.5 | |||
World Bank | 10.7 | |||
IFAD(2) | 0.1 | |||
IMF | — | |||
OPEC(3) | — | |||
24
| As of March 31, 2015 | ||||
CAF | 8.4 | |||
Other | — | |||
|
| |||
Total multilateral debt | 29.8 | |||
Bilateral debt: | ||||
Paris Club | 2.4 | |||
United States | 0.2 | |||
Latin America | — | |||
East Europe countries and China | — | |||
Japan | 5.5 | |||
Other countries | — | |||
Total bilateral debt | 8.1 | |||
|
| |||
Total official debt | 37.9 | |||
Private creditors: | ||||
Banking | 5.8 | |||
Suppliers | 0.1 | |||
|
| |||
Total private sector debt | 5.9 | |||
Bonds: | ||||
Brady + Global Bonds | 56.2 | |||
|
| |||
Total bonds | 56.2 | |||
|
| |||
Total public sector external debt | 100.0 | |||
| (1) | Medium- and long-term debt, excluding IMF financing. |
| (2) | Refers to the International Fund for Agricultural Development. |
| (3) | Refers to the Organization of Petroleum Exporting Countries. |
Source: Ministry of Economy (Office of Public Credit).
Public Sector External Debt Structure by Maturity Term
(in millions of U.S. dollars and as a percentage of total public sector external debt)(1)
| As of March 31, 2015 | ||||
Short-term debt | 61 | |||
Medium- and long-term debt | 19,947 | |||
|
| |||
Total | 20,007 | |||
Short-term debt (as a % of total public sector external debt) | 0.3 | |||
Medium- and long-term debt (as a % of total public sector external debt) | 99.7 | |||
| (1) | Includes Central Bank debt. |
Source: Central Bank.
25
The following table provides public sector external debt by currency as of December 31, 2014 and March 31, 2015.
Summary of Public Sector External Debt by Currency(1)(2)
(in millions of U.S. dollars, except for percentages)
| As of December 31, 2014 | As of March 31, 2015 | |||||||||||||||
| U.S.$ | % | U.S.$ | % | |||||||||||||
Currency | ||||||||||||||||
U.S. Dollar | 17,594 | 89.0 | 17,786 | 89.2 | ||||||||||||
Japanese yen | 1,114 | 5.6 | 1,176 | 5.9 | ||||||||||||
Special Drawing Rights (SDR)(3) | 30 | 0.2 | 27 | 0.1 | ||||||||||||
Euro | 480 | 2.4 | 418 | 2.1 | ||||||||||||
Swiss Franc | 265 | 1.3 | 270 | 1.4 | ||||||||||||
Nuevo sol(4) | 280 | 1.4 | 270 | 1.4 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | 19,764 | 100.0 | 19,947 | 100.0 | ||||||||||||
| (1) | Exchange rate as of March 31, 2015. |
| (2) | Includes outstanding Cofide loans not guaranteed by Peru. |
| (3) | World Bank unit of account, based on a basket of national currencies. |
| (4) | IADB loans converted to nuevos soles. |
Source: Ministry of Economy (Dirección General de Crédito Público (Office of Public Credit)).
The following table provides information regarding Peru’s public sector external debt service as of the dates presented.
Public Sector External Debt Service(1)
(in millions of U.S. dollars, except for percentages)
| As of March 31, 2014 | As of March 31, 2015 | |||||||
Interest payments | 245 | 253 | ||||||
Amortization | 135 | 777 | ||||||
|
|
|
| |||||
Total public sector external debt service | 380 | 1,030 | ||||||
As % of total exports(2) | 3.3 | 10.5 | ||||||
As % of total exports and workers’ remittances | 3.1 | 9.8 | ||||||
As % of GDP | 0.8 | 2.2 | ||||||
As % of total fiscal revenue | 3.8 | 11.8 | ||||||
| (1) | Medium-and long-term debt service; excludes Central Bank debt and excludes extraordinary financing and refinancing. |
| (2) | Includes exports of goods and services and investment income. |
Source: Central Bank.
In the three months ended March 31, 2015, interest payments on public sector external debt was U.S. $253.0 million, or 2.2% of GDP. In that same period, Peru paid U.S. $29 million to international organizations, U.S. $7 million to Paris Club creditors, U.S. $201 million to holders of sovereign bonds, U.S. $1 million to holders of Brady bonds, and U.S. $15 million to other creditors.
26
Peru issued public sector external bonds in connection with the Brady restructuring. As of March 31, 2015 approximately U.S. $53.7 million in principal remained outstanding on the Brady Bonds.
Domestic Debt
The following table provides total public sector domestic debt, excluding intra-governmental debt, as of the dates presented.
Total Public Sector Domestic Debt
(in millions of U.S. dollars, at current prices)
| As of March 31, | ||||||||
| 2014 | 2015 | |||||||
Long-term debt: | ||||||||
Banco de la Nación | 781 | 972 | ||||||
Treasury bonds | 16,145 | 17,947 | ||||||
Other | — | — | ||||||
|
|
|
| |||||
Total long-term debt | 16,926 | 18,918 | ||||||
Short-term debt | 1,311 | 1,170 | ||||||
|
|
|
| |||||
Total | 18,237 | 20,089 | ||||||
Total public sector domestic debt, as % of GDP | 9.0 | 10.0 | ||||||
| Source: | Central Bank. |
Public Sector Domestic Bonds(1)
(in millions of U.S. Dollars, at current prices)
| As of March 31, | ||||||||
| 2014 | 2015 | |||||||
Central Bank Capitalization bonds | — | 66 | ||||||
Financial system support bonds | 122 | 122 | ||||||
Debt exchange bonds | 549 | 443 | ||||||
Pension recognition bonds | 2,578 | 2,229 | ||||||
Sovereign bonds | 12,896 | 15,087 | ||||||
Other bonds | — | — | ||||||
Total | 16,145 | 17,947 | ||||||
| (1) | Excludes intra-government debt issued in the form of bonds. |
Source: Central Bank.
Debt Record
For further information regarding Peru’s indebtedness outstanding as of the date of this prospectus supplement , see Annex A – Republic of Peru: Global Public Sector External Debt.
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