8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 20, 2006

PriceSmart, Inc.

(Exact name of Registrant as Specified in its Charter)

Delaware	000-22793	33-0628530
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

9740 Scranton Road, San Diego CA 92121

(Address of Principal Executive Offices, including Zip Code)

Registrant’s telephone number, including area code: (858) 404-8800

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events.

On July 20, 2006, PriceSmart, Inc. (the “Company”) issued a press release announcing the Company’s receipt of a $4,785,847 payment from PSMT Philippines, Inc., a former Philippines subsidiary of the Company, on an $8,850,000 outstanding loan owed by PSMT Philippines, Inc. to the Company. The full text of the press release issued in connection with the announcement is filed as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) The following exhibit is filed herewith:

Exhibit No.	Description
99.1	Press Release of PriceSmart, Inc. dated July 20, 2006.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 25, 2006	PRICESMART, INC.
	By:	/s/ ROBERT M. GANS
		Robert M. Gans
		Executive Vice President, General Counsel and Secretary

EX-99.1

EXHIBIT 99.1

PriceSmart Announces Receipt of Philippines Loan Payment

San Diego, California (July 20, 2006) - PriceSmart, Inc. (NASDAQ:PSMT) today announced that on July 19, 2006 PSMT Philippines, Inc., its former Philippines subsidiary, paid to PriceSmart the sum of $4,785,847 on an outstanding loan of approximately $8,850,000, maturing in 2012. In light of the uncertain future of the business of PSMT Philippines, Inc., at fiscal year end 2005 the Company had recorded a full impairment of the loan receivable. The Company has agreed to accept the payment of $4,785,847 in full satisfaction of this loan (subject only to receipt of certain additional documentation which the Company expects to receive within the next two weeks).

About PriceSmart

PriceSmart, headquartered in San Diego, owns and operates U.S.-style membership shopping warehouse clubs in Central America and the Caribbean, selling high quality merchandise at low prices to PriceSmart members. PriceSmart now operates 23 warehouse clubs in 11 countries and one U.S. territory (four each in Panama and Costa Rica; two each in Dominican Republic, El Salvador, Guatemala, Honduras, and Trinidad; and one each in Aruba, Barbados, Jamaica, Nicaragua and the United States Virgin Islands).

For further information, please contact Robert E. Price, Chief Executive Officer (858) 551-2336; or John M. Heffner, Executive Vice President and Chief Financial Officer (858) 404-8826.