(Lima, June 28th, 2016).- The Inter-American Development Bank and the Republic of Peru, through Ministry of Economy and Finances, signed an agreement for a US$30 million loan to finance the project “Improvement and extend services of Employment Center for formal labor insertion of young people in Arequipa, Ica, Lambayeque, La Libertad, Piura, San Martin and Lima Metropolitana”, Daniel Maurate Romero, Minister of Labor and Employment Promotion, reported.
This loan will improve the services of the Employment Center for young people according government-implemented actions aimed to promote formal labor insertion by improving employability.
The loan agreement was signed by Peru’s Finance Minister Alonso Segura and IDB representative Viviana Caro. Held at Lima-based Economy and Finance Ministry headquarters, the ceremony was also attended by IDB representative Masami Yamamori.
The minister of Labor and Employment Promotion, Daniel Maurate highlighted that the loan will allow improving the articulation with the productive sector, it means a greater number of companies will use the entrepreneurial approach services, so that the Employment Center be the platform to hire workers.
“It is important to improve the operating processes of Employment Center with the regional governments, which will be responsible to administrate their Employment Center in the future”, he said.
On his side, Peru’s Finance Minister Alonso Segura welcomed support by the IBD to government-implemented actions aimed to promote formal labor insertion across regions by improving employability. The resources are aimed at enhancing quality of services of Employment Center to reinforce articulation between labor supply and formal demand from companies.
He specified that Peruvian government intervention seeks to boost productivity with increase wage and occupancy rate of trained young people, since services contribute to expanding labor opportunities for youngsters.
The IDB loan will be amortized by two payments on April 15th and October 15th, 2025. It will earn interest rates by three months based in LIBOR, plus a margin determined by IDB according to IBD policies, but not exceeding 0, 75% annual.
During the disbursement period, there will be not surveillance inspection commission, unless the IDB requests it, in which it may not be charged in a particular semester, more than 1% of the amount of financing.
