Report cited Peru's Default On Sovereign Land Bonds, Poor Financial Reporting, Weak Rule Of Law, And Concern About Adherence To OECD "Core Values"
LIMA, Peru, Dec. 13, 2017 /PRNewswire/ -- The following release is issued on behalf of the Agrarian Debt Bondholders Association (ABDA):
More than a week ago, on December 3, 2017, multiple non-profit bondholder groups representing families of Peruvian heritage sent a letter and report to OECD Secretary-General Angel Gurría questioning Peru's request for membership in the Organisation for Economic Co-operation and Development (OECD). The report – written by Dr. Hans J. Blommestein, who was head of Public Debt Management at the OECD from 2001 to 2016 – found that Peru's conduct in its longstanding selective default on sovereign Agrarian Reform Bonds should preclude it from joining the exclusive club of global economic leaders. The report also cited Peru's failure to properly report the default to international organizations and regulators and its "shortcoming in public integrity….in particular its commitment to the rule of law, human rights and transparency."
To date, our organizations, which have thousands of Peruvian and Peruvian American families as members, have received no substantive response from Peru.
Today, we reiterate our request for an unbiased and objective analysis of Peru's selective default on its Agrarian Reform Bonds, with answers to five basic, reasonable questions:
- Are the Agrarian Reform Bonds a valid sovereign debt of Peru?
- Does Peru report the Agrarian Reform Bond debt to the IMF? If so, what is the amount reported by Peru? If not, why doesn't Peru report the debt?
- Will Peru disclose the amount and form of consideration that it is offering to pay an individual bondholder prior to such individual bondholder permanently waiving its rights to legal action and submitting its bonds to a lengthy administrative process?
- How much of the Agrarian Reform Bond debt has Peru paid to bondholders under the Supreme Decrees issued in January 2014, February 2017 and August 2017? What percent of the overall Agrarian Reform Bonds outstanding as of January 1, 2014 have elected to participate in these various Supreme Decrees?
- Are the aforementioned Supreme Decrees based on a forged court decision issued in July 2013 by Peru's Constitutional Tribunal?
We are also aware that, as reported by El Comercio, Peru's Prime Minister Mercédes Aráoz claims to have sent a response to the OECD on December 5th but did not copy us. As the organization committed to transparency, we hope the OECD makes Peru's response publicly available.
Ramón Remolina – ABDA
Alfredo Adrianzen – ADAEPRA
Luis Huguet Nicolini - ADAEPRA
SOURCE Agrarian Debt Bondholders Association (ABDA)