Peru has appointed J.P. Morgan closing and reconciliation agent for its Brady agreement, signed last October with commercial creditor banks, a source told Dow Jones.
As reconciliation agent, J.P. Morgan will reconcile Peru's records with banks' records on $1.3 billion of defaulted debt and come up with a final list of Peru's creditors and the amount in interest arrears owed to each creditor.
The appointment of closing and reconciliation agents are important steps toward bringing the Brady agreement to fruition.
Peru delayed making its first interest payment to creditors, due on Dec. 29, because it had not yet identified its creditors - a task J.P. Morgan will now take on.
Instead of paying creditors directly, Peru deposited $22 million of the first payment into an account outside Peru, according to a telex sent to creditors.