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Grace Contract

1889 · 19th century

The Grace Contract was an agreement signed in 1888 and ratified in 1889 between the Peruvian government and its British bondholders, negotiated by Michael Grace. Peru's foreign debt was cancelled in exchange for control of the state railways for 66 years, guano shipments, annual payments and land concessions. The bondholders formed the Peruvian Corporation to run the railways, and the deal restored Peru's credit after the War of the Pacific.

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APA
The Epoch Institute. (2026). Grace Contract. In The Epoch Institute Encyclopedia. https://the-epoch-institute.org/encyclopedia/grace-contract
MLA
“Grace Contract.” The Epoch Institute Encyclopedia, The Epoch Institute, 2026, https://the-epoch-institute.org/encyclopedia/grace-contract. Accessed .
Chicago
The Epoch Institute. “Grace Contract.” The Epoch Institute Encyclopedia. 2026. https://the-epoch-institute.org/encyclopedia/grace-contract.
Harvard
The Epoch Institute (2026) ‘Grace Contract’, The Epoch Institute Encyclopedia. Available at: https://the-epoch-institute.org/encyclopedia/grace-contract (Accessed: ).

Last reviewed October 2026Random entry ↻