Pubdate: Fri, 29 Mar 2002 Source: EFE News (Spain Wire) Copyright: 2002 Agencia EFE S.A. PERU CONSIDERS ISSUING BONDS TO FINANCE WAR ON DRUGS Lima, Mar 29 (EFE).- Peru is studying the possibility of issuing special sovereign bonds in the international markets to finance the war on drugs, according to presidential drug enforcement adviser Ricardo Vega Llona. In statements published Friday in the daily La Republica, Llona said Peru urgently needs at least $1.2 billion to carry out development programs promoting alternative crops to replace coca leaf, the raw material of cocaine. Outlining the scope of the initiative, he said the funds raised through sale of the bonds "would be used for a specific program through a trusteeship held by a major institution such as the World Bank, the Inter-American Development Bank or the Andean Development Corp." The idea of issuing drug-fighting bonds has already been raised with U.S. and European authorities, who have shown themselves willing to discuss the matter in depth, according to Llona. "We should sit down and find mechanisms to raise money, since we could talk about grants or other alternatives," he added, recounting his approach in talks with U.S. and European officials. As for the foreign aid Peru is currently receiving to fight illegal drug traffic, Llona said that "without blaming any cooperating country, Peru needs a lot more money than it receives to invest (in alternative development) in coca-producing areas." More than $2 billion will be needed for such programs over the next four years, Llona said, adding, "but $1.2 billion is urgently needed right now." - --- MAP posted-by: Jay Bergstrom