A total of 38 people died and 55 were injured as two buses collided in northern Peru, the Rossiya 24 TV channel reported.

The tragedy occurred on one of the country's key highways, Panamericana, that links Peru's south and north.

Police said the toll from the head-on collision could considerably rise as many of those injured who were hospitalized are in grave condition.

Peru is notorious for its high number of traffic accidents, particularly in the mountains.

The problem is made worse by a poor condition of roads and vehicles, and careless driving. In addition, a driver's license can be illegally bought in the country for a mere $30.

Over 3,500 people are killed and 50,000 injured in road accidents in the country annually. Financial losses from traffic accidents are estimated at about a billion dollars, about one third of the country's healthcare spending.

MOSCOW, February 23 (RIA Novosti)