The Debt Hurdle Facing Peru's OECD Bid

The video discusses Peru's historical debt issue stemming from land expropriation in the 1960s and 70s, where the government issued bonds that remain unpaid. The financial implications are significant, with the debt amounting to 2% of Peru's GDP. Despite a low debt-to-GDP ratio, the legal responsibility to pay these bonds is clear, as stated by the Constitutional Tribunal in 2001. The video questions whether the current government should be held accountable for past decisions made during a military dictatorship.

What was the main action taken by the Peruvian military government in the 1960s and 70s that led to the current debt issue?

• Expropriating land

• Reducing taxes

• Building infrastructure

• Issuing new currency

Approximately how much is Peru's unpaid bond debt?

• $10 billion

• $5-6 billion

• $3 billion

• $1 billion

How does Peru's debt-to-GDP ratio compare to other countries of similar size and wealth?

• About the same

• Higher than average

• Not comparable

• Lower than average

What did the 2001 Constitutional Tribunal in Peru declare about the bonds?

• They were invalid

• They were already paid

• They should be paid

• They were optional

Who is responsible for paying the debt according to the 2001 ruling?

• International organizations

• The Peruvian state

• The military government

• The current government