BOGOTA (Reuters) - Colombia has reached loan agreements worth more than $1.2 billion with multilateral lenders, the finance ministry said, adding resources will go toward budget items this year and costs associated with peace plans.

The ministry has signed two loan agreements worth 300 million euros ($323 million) each with German state development bank KfW, the ministry said in a statement on Monday.

"These loans will contribute to financing the projects in the budget approved by Congress and highlights the cooperative agenda that Colombia has had with Germany for many years concerning peace and development," the ministry said in a statement.

The ministry also agreed a loan worth $663 million with the Inter-American Development Bank - which contributed $500 million - and KfW contributed 150 million euros.

Earlier this month, the government raised its fiscal deficit goal to 5.3% of gross domestic product this year, up from the previous estimate of 4.5% of GDP, citing the need for contra-cyclical spending to boost growth.

($1 = 0.9277 euros)

(Reporting by Nelson Bocanegra; Writing by Oliver Griffin; Editing by Lisa Shumaker)