Published legislation and draft legislation - Peru

Regulations supporting the Special Farm Restructuring Act

Supreme Decree 262-2017-EF

On 8 September 2017 the Ministry of the Economy & Finance published its regulations supporting Act 30573, the Special Farm Restructuring Act, discussed in issue 11 of Progreso, to organize the flow of resources allocated to farmers in designated emergency zones that have suffered partial or total losses to their crops because of natural disasters associated with the coastal El Niño phenomenon.

The Special Farm Restructuring Programme has a fund of PEN20 million to be allocated to debts of up to 5 tax units [Unidades Impositivas Tributarias (UIT)], equivalent to PEN20,050* or the equivalent in US dollars, that were in default at 31 July 2017, which at 31 March 2017 fulfilled the conditions of being: (i) debts owed by debtors classified as “normal” or “potentially problematic” with the SBS and (ii) that were reported as current in the SBS credit risk office.

The above-mentioned debt-relief will be delivered by means of a discount voucher for 1.5 UIT, equivalent to PEN6,075 applied on the total debt; and an additional discount voucher on the interest, late payment charges and expenses, of between 50% and 80% depending on the size of the debt.

IFIs should present an application for admission onto the Program, which will be evaluated by Agrobanco. This document should consider (i) all beneficiaries, providing all the information demonstrating their eligibility for the Program; and (ii) the conditions for debt reprogramming and/or restructuring. If the application is successful, Agrobanco will sign a contract with the IFI to channel the resources and oversee the obligations, by virtue of which the IFI’s involvement will be formalized and the obligations and rights of the parties to channel RAE resources will be established.

The regulation also stipulates that the program will run until 31 March 2018 and provides for the elimination of the debts originated in the Farm Debt Restructuring Program (PREDA).

 

* Value of UIT in 2017: PEN 4,050.00 (four thousand and fifty Peruvian Soles only)