LIMA, April 23 -- Peru's foreign and defense ministers resigned on Wednesday in protest over the interim president's decision to stall a US$3.5 billion (RM13.87 billion) deal for the purchase of 24 US F-16 fighter jets.

The ministers said the deal had already been signed and that to cast doubt on it now jeopardized Peru's reputation as a trading partner.

Despite the president's declared wish to suspend the purchase, the Ministry of Economy announced late Wednesday that it had transferred US$462 million (RM1.83 billion) as part of an initial payment for the contract with aircraft manufacturer, Lockheed Martin.

The confusion over the purchase and the abrupt resignations deepened instability gripping the South American country, after a re...