Peru Authorizes $2 Billion Private Bailout for Petroperu
The Petroperu Talara refinery in Piura, Peru.
Photographer: Sebastian Castaneda/BloombergThe Peruvian government on Monday authorized Petroperu to take on private loans in order to alleviate the liquidity crisis at the ailing state-owned oil firm.
An emergency decree allowed the Finance Ministry to assume contingent commitments with domestic or international entities of as much as $2 billion to support Petroperu’s operations, as well as $500 million in short-term obligations. Details were published in Peru’s official gazette, weeks after Petroperu sounded the alarm on its liquidity situation.