Suspension of IDB disbursements to Peru
The IDB suspended loan disbursements to Peru on June 4, 1987 due to payment arrears, following the previous decision of the World Bank. This measure was part of the conflict between Alan Garcia's government and the international financial institutions over the policy of limiting the payment of foreign debt.
The Inter-American Development Bank (IDB) suspended disbursements of approved loans to Peru due to Peruvian arrears. This followed a previous decision by the World Bank (WB), which had also suspended its disbursements for the same reason. The suspension occurred in a context of tensions between the government of Alan Garcia Perez and the international financial institutions, particularly after the Peruvian president announced that he would only use 10% of export revenues for foreign debt payments. In August 1986, the IMF had declared Peru ineligible due to a US$160 million default on financial obligations.