LIMA, March 19 (Reuters) - Peru plans to prepay $1.12 billion of debt to the World Bank and the Inter-American Development Bank by mid-year, officials said on Wednesday, further reducing the debt of the booming Andean country.

The government plans to fund the bulk of the payments with resources from the Treasury, and possibly with a bond sale, said Jose Miguel Ugarte, director of debt at the Finance Ministry.

"We are talking of prepaying $1.1 billion of debt -- $620 million to the World Bank and $497 million to the IADB," Ugarte told Reuters by telephone.

At the close of last year, Peru had a $2.7 billion debt with the World Bank and owed $3.9 billion to the IADB, said Ugarte.

Earlier this month, Peru cleared nearly all of its Brady debt by authorizing a $838 million Brady bond buyback.

Peru, which has one of the fastest-growing economies in the world, expanded by 9 percent last year, on high mineral prices and internal demand. This year, the government has said it expects to grow some 6.2 percent. (Reporting by Teresa Cespedes, writing by Dana Ford, editing by Leslie Adler)