7 VI PECUNIARY REPARATIONS 28. In the reparations agreement, under the heading of “Economic compensation,” the State pledges to pay the sum of US$125,000.00 (one hundred twenty-five thousand United States dollars) to Virginia Bonifacia Ugarte Rivera de Durand and Nolberto Durand Vargas. The agreement also stipulates that the amount shall “constitute the single payment that the State will make, either directly or indirectly, to the beneficiaries of the compensation owed as a result of the judgment of August 16, 2000,” delivered by the Inter-American Court. It also states that with the signing of the agreement, “the victims’ legal heirs and their representatives expressly waive any right to bring judicial or extrajudicial action against the State seeking an additional sum.” Moreover, under the agreement Peru reserves the right to bring its own action against those convicted of the material facts in the instant case, in order to recover the monies it has paid in damages, all in accordance with the applicable law. 29. As to the manner of payment, under clause seven of the agreement the parties thereto agree that the State will begin the steps necessary to effect partial payment within the current fiscal year; should no payment be possible in this fiscal year, it will incorporate the amount specified in the pecuniary damages clause, into the General Budget of the Republic for Fiscal Year 2002. Payment shall be effected during the second quarter of that fiscal year, in accordance with the corresponding budgetary appropriation, and shall be made directly and jointly to both beneficiaries of the reparations. 30. That very same clause of the agreement stipulates that the specified sum (supra paragraph 29) shall not be subject to any existing or future tax. 31. Finally, clause seven of the agreement also stipulates that “[o]nce the period for payment […] has expired, the State shall be in default and shall be required to pay the interest set by the Banco Central de Reserva to compensate for obligations in default.” * * * 32. The Court is endorsing the terms of the agreement as regards the pecuniary compensation agreed upon as one form of compensation for the damages caused, and considers that they constitute a positive step on Peru’s part toward good faith compliance with its obligations under international conventions. The appropriate course of action is for the State to take the necessary steps to effect payment of a portion of the compensation during the present fiscal period or, failing that, to pay the full compensation owed in the second quarter of fiscal year 2002, as the parties agreed. 33. The Court also endorses the terms agreed upon with regard to the method to be used to pay the pecuniary damages specified in the agreement, which terms are consistent with the Court’s case law.5 5 Cf. Cesti Hurtado Case. Reparations, supra note 2, paragraphs 76, 77 and 78; “The Street Children” Case (Villagrán Morales et al. v. Guatemala). Reparations, supra note 2, paragraphs 119, 120