UPDATE 1-Peru court orders gov't to pay 40-year-old bonds worth billions
LIMA, July 16 (Reuters) - Peru's top court on Tuesday ordered the government to pay 40-year-old land reform bonds at their current value and with interest, terms that will likely lead to a payment worth several billions of dollars.
The government has six months to pass a decree detailing how the payments will be carried out, said a court resolution published late on Tuesday.
The president of Peru's Constitutional Tribunal ruled in favor of bondholders after the court's members were split 3-3 on whether to force the government to pay off the debt, which has been owed as compensation for land redistributed to the poor in the 1970s.
Conservative estimates say there are between $1 billion and $3 billion owed in land reform bonds. Other estimates say the liability is far larger, between $4.6 billion and $8 billion, or about 4 percent of Peru's gross domestic product.