At the request of the government of Peru, the International Monetary Fund extended for one year a stand-by credit agreement which enabled Peru to draw up to $12.5 million from the Fund. At the same time, Peru renewed a stabilization agreement with the United States Treasury which permitted drawings up to $12.5 million, and a stabilization credit of $5 million granted by the Chase National Bank of New York. In announcing the agreements, the government of Peru emphasized its firm intention to follow sound fiscal and monetary policies in maintaining freedom of exchange.