LIMA, Feb 27 (Reuters) - Peru's government granted state-run oil producer Petroperu an $800 million loan guarantee to keep its operations afloat, according to a decree published on Tuesday in the country's official gazette.

The decree comes a day after government reshuffled the board at the embattled firm, which has said it has spending needs of more than $2.5 billion. The government said the new financing aims to enable the firm to make payments to its suppliers.

The government said it would also expand a short-term debt operation for the company for up to $500 million.

According to the decree, the state oil firm must now carry out a reorganization in less than 15 working days. Once the new board is in place, it has 20 days to approve its 2024 restructuring plan.

Petroperu must now also implement a voluntary retirement program within 60 days.

Peru's economy minister had warned earlier this week that the company had a "huge liquidity problem," and that through financial backing and austerity measures, the government hoped to make the firm solvent again.

https://www.reuters.com/markets/commodities/peru-grants-embattled-state-run-petroperu-800-mln-loan-guarantee-2024-02-27/