World Bank Approves $20 Million To Support Trade And Competitiveness In Peru

WASHINGTON, June 5, 2003 — The World Bank today approved a $20 million loan to support the Government of Peru’s strategy to strengthen relevant institutions to increase trade, productivity and export competitiveness in the country’s private sector.

By increasing competitiveness, the Trade Facilitation and Productivity Improvement Technical Assistance Project will help Peru sustain and increase the pace of its economic growth and stimulate job creation in the country’s urban and rural areas.   

“Competitiveness is critical to trade, and successful trade is the path to economic growth and poverty reduction,” said Marcelo Giugale, the World Bank’s Regional Director for Peru, Ecuador, Bolivia and Venezuela.  “This project is focused on exporters from small and medium enterprises, but its long-term benefits will reach consumers in Peru and the Andean region as a whole, as costs are reduced and product quality is improved.”   

The project will increase and broaden the supply of exports, especially non-traditional products, strengthen Peruvian companies’ capacity to promote their exports abroad, and support their efforts to gain access to foreign markets.  The quality of exports will be improved by implementation of quality control practices and the application of international standards and certifications.

The project will also expand access to exporting firms by making insurance, leasing, and working capital available to them at more competitive costs.  Logistics and transaction costs will be significantly reduced by eliminating inefficiencies in the supply and distribution chain, such as operations, and customs and security procedures at seaports and airports.         

“The World Bank is proud to work in partnership with Peruvian authorities to use the country’s rich endowment of natural and human resources to develop diversified trade which, in turn, will serve as protection from external shocks,” said John H. Stein, World Bank Task Manager for the project.    

This single-currency, fixed-spread loan has a repayment period of 14 years, including 8 years of grace.  Disbursements will run from 2004 through 2006.

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For more information on this project, please visit:
http://www4.worldbank.org/sprojects/Project.asp?pid=P081834