Prepared by the former Peruvian Minister of Economy and Finance and two leading Peruvian economists, this report demonstrates that the burden of Peru’s external debt has been drastically reduced in recent years and shows that the country has the capacity to repay the land bonds. The report then outlines a realistic way for Peru to address the outstanding debt by exchanging them for new 30-year sovereign bonds. Finally, the authors explore the probable benefits of repaying the debt, including a better credit rating for Peru, decreased borrowing costs and an enhanced reputation for international investments.