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President says Peru owes nothing to fund in bond dispute -report
August 22, 2016 / 6:30 PM / a year ago

President says Peru owes nothing to fund in bond dispute -report

LIMA, Aug 22 (Reuters) - Peru’s new president, Pedro Pablo Kuczynski, said the government does not owe anything to a U.S.-based investment fund that is suing the Andean country over disputed bond payments, Latin Finance reported on Monday.

Gramercy Funds Management LLC filed a $1.6 billion lawsuit against Peru in June, accusing the country of violating its free trade agreement with the United States in calculating the current value of bonds issued in the 1970s as compensation for land expropriations.

Gramercy owns about 10,000 of the bonds and said they should be worth $1.6 billion instead of the $1.1 million it said it would get under a method ordered by the Supreme Court.

“I don’t think we owe them anything,” Kuczynski was quoted as saying in an interview with Latin Finance.

“We will look at it when the issue comes up. They’ve hired lobbyists, they’re making a big fuss. And we’re not stupid. We know what to do. We’ll face the music if there is music.”

Kuczynski’s office did not immediately respond to requests to confirm the accuracy of the Latin Finance story, which was published on its website.

The previous government of Ollanta Humala had said that it had acted diligently and would defeat the claim. (Reporting by Mitra Taj; Editing by Alan Crosby)

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