When Peruvian general Juan Velasco seized power in 1969 and started expropriating tracts of land to implement a redistribution programme, the owners were compensated in “Agrarian Reform Bonds.” Augusto Pretel is still waiting for the government to honour them.

“Forty-three years later I continue the battle to get paid,” says the 75-year-old Mr Pretel, whose family lost a swath of land in Ancash. “My grandmother died battling, my father died battling, and I will continue battling.”

Mr Pretel is one of many bondholders, including Gramercy, an emerging markets-focused hedge fund, that are clamouring publicly for Lima to fairly settle the debts…

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