rom 1969 to 1982, the Peruvian government expropriated 23 million acres of rural land —an area the size of Indiana—from thousands of property owners. The landowners were issued Agrarian Reform Bonds that the state promised to repay in 20 to 30 years. But in the 1980s and 90s, Peru was devastated by a series of economic crises that left the face value of the bonds worthless.

The History

From 1969 to 1982, the Peruvian government expropriated 23 million acres of rural land —an area the size of Indiana—from thousands of property owners. The landowners were issued Agrarian Reform Bonds that the state promised to repay in 20 to 30 years. But in the 1980s and 90s, Peru was devastated by a series of economic crises that left the face value of the bonds worthless.

Despite being constitutionally bound to compensate bondholders for the fair value of their land, the Peruvian government stopped repaying the bonds, completely ceasing all payments around 1992. Today, Peru has an approximate $5.1 billion debt obligation with regard to the bonds.