LIMA, July 5 (Xinhuanet) -- Peru signed an agreement with the Paris Club on Tuesday, under which it will make an advance paymentof some 1.6 billion US dollars of its public debt to the Paris Club, the official daily El Peruano reported on Tuesday.

    The agreement was signed by the Peruvian Economy Ministry and representatives of the creditor countries of the Paris Club.

    Ambassadors or other diplomatic representatives of Austria, Canada, Finland, France, Britain, the Netherlands, Italy, Japan and the United States signed the agreement respectively.

    Peruvian Economy Minister Pedro Kuczynski said the next governments will save 350 million dollars a year through the advance payment.

    The Peruvian government will issue treasury bonds up to 2.03 billion dollars both on domestic and foreign markets to raise money for the payment.

    The current agreement on the public debt between Peru and the Paris Club is aimed at restructuring the debt which was renegotiated in 1993 and 1996.

    The anticipated payment will cover part of the debt due in August 2005 and December 2009.

    The Paris Club groups Austria, Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, Norway, Russia, Spain, Sweden, Switzerland, Britain and the United States. Enditem