“It has become normal to breach arbitral awards”: On the delay in the payment of awards by the State

Abstract

This article analyzes a problem in arbitration with the State: the repeated failure of the Peruvian State to pay arbitration awards on time, especially in the domestic commercial sphere. Based on real cases, current regulations and official statements, it shows how this practice affects legal security and discourages private investment. In addition, the treatment given to national awards is contrasted with some international cases, revealing a double standard in compliance. It also analyzes the economic effects of non-compliance, such as the accumulation of legal interest and the procedural burden faced by creditors. Finally, regulatory reforms are proposed, including the creation of a “national SICRECI” and adjustments to the budgetary and tax framework, in order to guarantee a more equitable and efficient system for the enforcement of awards against the State.