For Luis Valdivieso, the day of Monday not could have been better: assumed as the new Minister of economy of Peru on the same day in which Standard and Poors granted investment-grade rating to his country. The task of the Latin American Finance Ministers, usually isn’t simple. But in the case of the Peruvian economy, that it is marching in the right direction, the only thing you need to do is stay on course and avoid that different factors that threaten to divert it, achieve it. Already with his Orthodox profile, the new Minister of economy ensuring the continuity of economic policies that come forward being in Peru. In particular, the sustainability of fiscal austerity is key at a time where inflationary pressures have increased in a context in which monetary policy is ineffective.
But returning to the subject of Peru investment grade rating, what drew S & P to improve the note at a time when global markets are so agitated and may negatively impact on the Peruvian economy? Sebastian Briozzo, analyst for S & P credit, in a statement said: the improvement is supported by the significant drop in the fiscal and external vulnerabilities of Peru, in the context of diversification of the sources of growth with low inflation and strengthening of the macroeconomic fundamentals. For Fritz Dubois of the Peruvian Institute of economy and former adviser to the Ministry of the economy: despite a difficult international context, Peru is doing very well. He has had an excellent fiscal position and does not need that markets are open to finance. The Peruvian economy will easily grow by 8% this year. The wide access that has Peru to international markets in the current global economic context, is reflected in the fact that recently, he issued bonds with deadlines of 30 and 40 years (the 30-year bond issued it at fixed rate).
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