LIMA, Sept 8 Peru will seek to swap up to $6
billion worth of its debt in dollars for debt in soles
or other currencies as expectations for a hike in U.S.
interest rates mount, the country's Finance Minister Alfredo
Thorne said on Thursday.
Thorne said new bond issuance to reduce dollar debt would
help Peru avoid more costly debt payments if the Federal Reserve
starts tightening monetary policy as expected as early as this
"The idea is to withdraw expensive debt and issue cheap debt
for up to $6 billion dollars," Thorne said on local television
in his presentation of Peru's 2017 proposed budget to Congress.
Thorne said the government of newly-elected President Pedro
Pablo Kuczynski, a former investment banker who took office July
28, would also aim to slash the amount of debt owed to
multilateral institutions such as the World Bank by 43 percent.
The sol has gained 1.35 percent against the
dollar this year amid expectations for interest rate hikes in
the United States.
Last month Thorne said the government did not foresee the
need for fresh debt to cover the 2016 and 2017 deficits, and
would opt to issue new bonds in soles instead of dollars for any
(Reporting By Marco Aquino and Mitra Taj; editing by Diane