Japan said today that it is willing to resume loans to Peru if the South American nation’s new government shows willingness to deal with its serious economic and social problems.
The Japanese ancestry of Peru’s new president, Alberto Fujimori, has raised hopes of greater access to Japanese aid. Fujimori said Monday that he hopes to visit Tokyo before his scheduled July 28 inauguration.
Peru was the largest recipient of Japanese aid in Latin America in cumulative terms until 1988, but dropped to fourth largest after it defaulted on payments and Japan cut off its yen credits.
Fujimori faces widespread unemployment, a 2,000% inflation rate, terrorism and extensive drug trafficking.