The Government of Peru will receive at least $700 million in financing from the Development Bank of Latin America and the Caribbean (CAF) in 2026. The funds are intended for projects related to security, tourism, and basic infrastructure.
The announcement was made by CAF Executive President Sergio Díaz-Granados during a meeting attended by President José Manuel Balcázar and Prime Minister Denisse Miralles.
Prime Minister Miralles emphasized that this financial support shows international confidence in Peru’s economic stability and responsible fiscal management. “The backing of CAF is a clear sign of confidence in Peru. Our country maintains solid macroeconomic fundamentals and responsible management of its public finances, which allows us to attract investments that translate into more security, more development opportunities, and better services for citizens,” said Miralles.
Miralles also noted that Peru currently has the lowest inflation rate in the region at 1.5% for 2025, a GDP growth rate of 3.4% for 2025, compliance with the fiscal rule (2.2% of GDP), and one of the lowest country risk levels in Latin America. These indicators have contributed to international organizations’ trust in Peru.
CAF Executive President Díaz-Granados stated that the multilateral organization will continue supporting Peru’s development priorities. “These operations reflect CAF’s commitment to supporting Peru in its strategic priorities. We are promoting projects that will improve the quality of life for thousands of Peruvians, reaffirming our role as one of the main sources of financing for development in Latin America and the Caribbean,” he said.
Among the prioritized projects is a second tranche of credit for the penitentiary system worth $200 million. This is part of an $800 million program approved in 2025 aimed at improving prison infrastructure and addressing gaps within the national penitentiary system.
Another major initiative is funding for the Cusco-Apurímac Tourist Road Corridors Program with $300 million. The project aims to enhance connectivity to Choquequirao, supporting tourism and economic growth in southern communities. Additional regional programs will focus on literary, cultural, and religious tourism corridors.
In terms of basic services, CAF will support Chancay’s Water and Sanitation Project with an investment of $200 million to expand potable water coverage and wastewater treatment for thousands of families. To expedite this project, CAF has also provided a non-reimbursable technical cooperation grant worth $1.86 million for necessary studies ahead of a planned loan operation set for 2026.
“We are pleased to work with CAF because it is a strategic partner for national development. These investments are not just numbers; they represent projects that mean safe water for families, job opportunities through tourism, and a more efficient justice system. That is the real impact we seek to improve Peruvian lives,” stated Prime Minister Miralles.
CAF held its Board meeting in Lima on March 3–4 with finance ministers from across Latin America and the Caribbean attending. During this event, agreements were signed with various Peruvian state institutions covering initiatives in infrastructure, transport, health, environment, production, justice, fiscal sustainability, and institutional strengthening.
Additionally, CAF approved humanitarian aid amounting to $250,000 to assist families affected by recent floods across several regions—particularly Arequipa and northern Peru.
“The people of Peru deeply value this cooperation. We will work together so each project reaches all regions—closing historic gaps and generating well-being for our population. That is this Government’s central purpose: ensuring economic growth leads to tangible progress for everyone,” concluded Prime Minister Miralles.
