PABJ

Peru is in selective default and must honor its promises.

For the last 40 years, Peru has been in selective default on its agrarian reform bonds, a payment that was guaranteed when a communist military government implemented drastic agrarian reform in 1969, confiscating land worth $42 billion today. The agrarian reform bonds issued in exchange for this land expropriation are worth in excess of $5 billion to current bondholders, which include descendants of Peruvian farmers living across the globe, and many pension plans, endowments, foundations and investment funds that have invested in these bonds as a valid sovereign debt obligation of Peru.

Peru has taken illegitimate steps to avoid payment such as relying on a 2013 court decision tainted by forgery and white-out. Peru’s offer consists of a complicated mathematical formula which, in 2014, provided no value to bondholders, and, in 2017, is impossible to decipher without additional information.

Our organization is fighting for fair payment and asks Peru to honor its decades-old promises by providing fair compensation for this outstanding government debt. The issue can no longer be swept under the rug.

To the government of Peru: How much do you owe? When will you pay? And when will you disclose these answers to the U.S. Securities and Exchange Commission (SEC)? The Organisation for Economic Co-operation and Development (OECD)? The ratings agencies who cover your bonds? The International Monetary Fund (IMF)?

More to come….