PERU · ECONOMY
Key Facts
- The country Peru is a major copper exporter on South America’s Pacific coast, led by President Keiko Fujimori.
- Why it matters The package adds US$2.4 billion to the 2026 budget and allows up to US$1.28 billion of new bonds.
- What happened Congress passed the extra-spending bill on Wednesday 28 October; the Senate vote was 37 to 10.
- What it means for you US bond investors may see new Peruvian sovereign bonds sold at home or abroad.
- Still open The president must still sign the bill, and no bond sale date has been announced.
- Power Index Peru ranks 5th of 14 in The Rio Times Latin America Power Index, with 54.7 points (October 2026 edition).
In Plain English
Supplementary credit: a law that adds money to a budget already in force, here the 2026 budget. It is paid for with extra tax revenue and with bonds.
El Niño: a periodic warming of Pacific waters that brings floods to Peru’s north and drought to its south. The government is spending ahead of the 2026 and 2027 season.
Pension 65: a state pension for poor older adults. The ministry in charge of the budget is the Ministry of Economy and Finance, led by Elmer Cuba.
Peru’s Congress approved a supplementary credit of S/8,228.4 million (US$2.38 billion) on Wednesday 28 October, adding money to the 2026 budget for El Niño preparations, public works, security, health and education. For US investors, the text also lets the government issue up to S/4,428.7 million (US$1.28 billion) of bonds at home or abroad.
The Ministry of Economy and Finance, led by Minister Elmer Cuba, set out the request to the Congress’s joint budget committee in a note dated Monday 5 October. Dollar figures here use the central bank’s close of S/3.453 per US$ on 28 October.
Where the Money Goes
The ministry lists S/762 million (US$221 million) to maintain 12,054 school buildings against El Niño damage and S/691 million (US$200 million) for health services, including the fight against child anemia. It also lists S/516 million (US$149 million) for school kits for more than 1.2 million students in poverty, S/380 million (US$110 million) for water and sanitation, and S/247 million (US$72 million) for small irrigation and farm work.
Social programs get S/304 million (US$88 million), including an extra S/350 (US$101) for each Pension 65 beneficiary, and S/201 million (US$58 million) goes to the Llamkasun Peru employment program. Another S/1.04 billion (US$301 million) keeps works going, among them Lima’s Metro Line 2 and the Santa Rosa expressway, and S/581 million (US$168 million) is set aside for El Niño prevention and response.
The chair of the joint budget committee, Senator José Arista of the Fuerza Popular party, grouped the money into four blocks: S/702.9 million (US$204 million) for El Niño prevention, S/2,308.6 million (US$669 million) for essential services, S/3,620.2 million (US$1.05 billion) for public investment and equipment, and S/1,596.7 million (US$462 million) for obligations that cannot be postponed. The ministry’s own list groups the same money differently, so the El Niño share depends on how it is counted.
How Congress Voted
Senators approved the bill 37 to 10 with 6 abstentions, and in the Chamber of Deputies the ministry reports 81 votes in favor, 10 against and 27 abstentions, a yes count that some other tallies put at 83. Cuba said the margins show broad confidence in the government’s economic and fiscal decisions.
Lawmakers changed some of the Executive’s text, including an exceptional permission for municipalities to move money between budget lines within 15 calendar days after the law takes effect. Arista said the change responds to local governments whose money from an earlier credit, approved in July, could not be used or moved to nearly finished works.
How the Credit Is Paid For
The ministry says 46.2% of the credit comes from ordinary resources, mainly higher tax revenue tied to the copper price and strong activity, and the other 53.8% from sovereign bonds. The approved text allows an issue of up to S/4,428.7 million (US$1.28 billion) at home or abroad.
The ministry said on Sunday 18 October that Peru’s 12-month fiscal deficit fell to 0.9% of GDP in September, below the 1.8% limit set for 2026. The credit is separate from the wider El Niño plan of about S/18 billion (US$5.2 billion) announced on Thursday 22 October, which the ministry says goes into the 2027 budget.
What It Means for You
US bond investors should note that Peru now has approval to borrow up to US$1.28 billion more, while its 12-month deficit is 0.9% of GDP against a 1.8% limit. Cuba met US business groups and asset managers in New York on Tuesday 27 October, a trip the ministry says helps Peru reach global lenders, as covered in Peru Pitches US$50 Billion to US Investors.
At a US-Peru business forum, in a ministry note of Thursday 29 October, Cuba said the government is answering El Niño, higher fuel prices and higher world interest rates, and US Ambassador Bernie Navarro was among the guests. The same note says the government is weighing an expanded Works for Taxes scheme, in which private firms pay for public projects and recover the cost against their taxes, and the Peru country page tracks the follow-up.
What Is Not Known
The bill becomes law only after the president signs it and the official gazette publishes it, and the ministry has not given a date. It has also not said when any of the bonds would be sold or in which market.
The El Niño share ranges from S/581 million (US$168 million) in the ministry’s list to S/702.9 million (US$204 million) in the committee chair’s blocks. How much of the money will actually be spent before the end of 2026 is not stated.
Frequently Asked Questions
How much did Peru’s Congress approve on 28 October?
It approved a supplementary credit of S/8,228.4 million (US$2.38 billion) for the 2026 budget, at S/3.453 per US$. The money goes to El Niño preparation, public works, security, health and education.
Will Peru issue new bonds?
The approved text allows up to S/4,428.7 million (US$1.28 billion) of bonds at home or abroad, which is 53.8% of the package, the ministry says. No issue date has been announced.
Where does the extra money come from?
The ministry says 46.2% comes from ordinary resources, mainly tax revenue lifted by high copper prices, and 53.8% from sovereign bonds. Peru’s 12-month deficit was 0.9% of GDP in September, below the 1.8% limit.
Is the credit already law?
Congress approved the bill on 28 October, and the president must sign it and the official gazette must publish it. The ministry has not given a date.
Sources: Ministry of Economy and Finance, credit approved, 28 October 2026; Ministry of Economy and Finance, credit presented to Congress, 5 October 2026; Ministry of Economy and Finance, fiscal deficit, 18 October 2026; Ministry of Economy and Finance, business forum note, 29 October 2026; Ministry of Economy and Finance, New York investor meetings, 27 October 2026; Ministry of Economy and Finance, 22 October 2026 measures; Congress of Peru, note on the 28 October 2026 plenary session and the budget committee chair.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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