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Peru’s Constitutional Court Gives MEF 60 Days to Rewrite Agrarian Bond Payment Rules

The ruling replaces the MEF’s 2017 formula with valorist updating to avoid token indemnities.

Overview

  • The Dec. 1, 2025 judgment orders a Supreme Decree establishing a new valuation method plus an administrative registry and payment process, with the 60‑day window expiring in late January.
  • Annex 1 of DS 242‑2017‑EF was declared inapplicable and a 2021 resolution by Lambayeque’s First Civil Chamber was annulled.
  • The tribunal found the MEF’s exchange‑rate formula yielded “irrisoria” compensation that violated property rights and prior TC precedents.
  • The Lambayeque court must issue a new decision consistent with the TC’s criteria, and the State was ordered to pay case costs.
  • Momentum for implementation is growing as Congress’s Economy Commission advances a bill to restore the administrative payment pathway and advisers cite roughly 300,000 affected cases and possible choices of payment in cash, bonds, land or projects.