Grace Contract

The Grace Contract was an 1886 pact between Peru and British bondholders to retire debts against Peru from bonds issued in 1870 (£7,400,000) and 1872 for £36,800,000. The bondholders formed the Peruvian Corporation^[1] in order to fulfill certain obligations as a guarantee to recoup losses from the defaulted bonds. The Grace Contract was not actually formalized until 1890.