Market: Peru

IIC gives green light to US$10-million loan for Quimpac

The Inter-American Investment Corporation (IIC), part of the Inter-American Development Bank, has approved a US$10 million loan to the Peruvian chemical, salt and paper producing plant Quimpac SA. The decision was announced on February 14.

22 February 2002

Peru loses case against steel company

The Peruvian government has lost a two-year battle to recover more than US$36 million allegedly owed by national steel producer Corporación Aceros Arequipa SA. Barrios Fuentes Urquiaga Abogados defended Aceros Arequipa.

19 February 2002

Securities Market Law amendments give financial institutions more options

Law No. 27,649, enacted on January 23, amends a number of articles of Peru’s Securities Market Law (SML). The amendments will take effect 60 calendar days from that date. The changes are designed to: (i) improve the institutional framework governing the operation of the national securities market and provide market access to a wider range of companies; (ii) make available to the banking system a more efficient complementary financing source; and (iii) promote competition to reduce interest rates, as well as responding to the demands for change of institutional investors.

19 February 2002

INDECOPI rules in favour of tobacco companies

The consumer protection commission of INDECOPI, the Peruvian competition regulator, has rejected a complaint brought by the Consumption Quality Research Centre against a group of cigarette trading and manufacturing companies in Peru.

08 February 2002

Peru's first international issue since Brady restructuring imminent

In an attempt to reduce medium-term public debt, the government of Peru is to place bonds in the international market for the first time since its 1997 debt re-negotiation under the Brady programme.

01 February 2002

Peru bows to Luz del Sur in arbitration

Rodrigo Elías & Medrano Abogados has successfully represented Lima’s largest electricity distribution company, Luz del Sur SAA, in its arbitration proceedings against the Peruvian Government in respect of the company’s right to income tax stability under an agreement executed with the Peruvian State. The arbitration award, rendered in December, fully acknowledged Luz del Sur’s claim.

25 January 2002

Second opinion - Surtax: a tax on dividends?

This piece was prompted by Muñiz, Forsyth, Ramírez, Pérez-Taiman & Luna-Victoria’s article ‘Peru’s New Tax Provision: An Additional Rate or a Tax on Dividends?’, which was published in Latin Lawyer in November 2001.

25 January 2002

New promotional tax legislation approved in Peru for hydrocarbons and mining activities

The Peruvian Congress has recently enacted Laws 27623 and 27624, which aim to promote mining and hydrocarbons exploration activities, respectively. The first of these laws grants mining concessionaires the right to recover any Value Added Tax (IGV) and Municipal Promotional Tax (which taken together total 18%) paid in connection with exploration of the mining site. In turn, Law 27624 provides for the same tax benefit to apply to entities that execute a licence or service contract for the exploration and exploitation of hydrocarbons, as well as entities that execute the so-called contracts for technical assessment (“contractors”).

11 January 2002

French energy company in joint venture with Electricidad Andina of Peru

Electricidad ANDINA SA of Lima, Peru and SIIF ENERGIES, the renewable energy subsidiary of Electricité de France (EdF), have established a joint venture in Peru. Under the joint venture, to be called SIIF ANDINA SA, the group will build a total of 120MW of generating capacity in several small hydropower projects ranging from 5 to 40MW during the next three to four years. These will include ‘greenfield’ projects, privatisations and the refurbishing of existing projects.

21 December 2001

US$100-million loan for PSEG's Peruvian subsidiary

Elegia and its subsidiary Electroandes have taken out a US$100-million loan from a syndicate of banks comprising Banco de Crédito del Perú (BCP), who acted as the agent, Banco Continental, BankBoston, NA and Banco Wiese Sudameris. Elegia is a 100 per cent Peruvian subsidiary of PSEG, which recently acquired 99.67444 per cent of Electroandes. The transaction was concluded on December 12.

21 December 2001

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