PERU GOVERNMENT ASSUMES DEBT OF ELECTROPERU
the peruvian government announced it would
assume 1.36 billion dlrs of foreign medium- and long- term debt
of the state electrical power firm electroperu sa and its nine
regional subsidiaries.
    An economy ministry decree published in the official
gazette said that the amount comprised 472 mln drs in arrears
in principal which matured between 1982 and 1986 inclusive and
and 888 mln dlrs in principal which were to mature between 1987
and 1996 inclusive.
    Electroperu sa would repay the government the amount over
20 years, with one year grace, at zero pct interest.
    The government would require electroperu, which has often
run losses since its creation in 1972, to generate a profit of
four pct annually beginning next year.  The decree did not say
specify if this was net or gross profits.
    Electroperu would also to submit a plan within 60 days to
reduce its costs.
    Peru's total foreign debt on december 31, 1986 was 14.46
billion dollars, the central bank said. Out of the total, 11.04
billion dlrs correspnds to the medium-and-long-term debt owed
by the public sector to foreign creditors.
 Reuter
