Japan will offer 20 billion yen (about 25 million U.S. dollars) in loans to Peru in a bid to boost the South American nation's economic growth, Japanese Prime Minister Yoshihiko Noda said at a meeting with visiting Peruvian President Ollanta Humala in Tokyo on Wednesday.

The Japanese government said the loans will be channeled to sectors including the improvement of water supply and sewerage systems and energy-saving measures in public transportation.

Peru supplies Japan with its natural resources like copper, zinc and silver. The two nations had worked out a free trade agreement that took effect in March.

According to a joint statement released on Wednesday, Humala hoped to seek assistance from Japan in developing renewable energy, eco-efficiency and clean technologies.

Humala is in Japan for a three-day visit which will last until Thursday.