Peru: 10 Government Actions That Will Positively Impact the Economy | news

A few days ago the government announced ten measures to revive the Peruvian economy and investment bank BCP Securities believes that it will have a positive impact on the country's manufacturing activities.

“This is to the extent that inflationary pressures and political instability are contained, with possible restarts Social protests“, he pointed out.

He said the measures were implemented through an emergency decree, which will remain in effect until December 31, 2024, except for Article 4, which is valid until June 30 this year.

– INEI: Peruvian economy grew by 1.37% in January 2024

“We feel it is important to highlight the change in the government's rhetoric following the reshuffle of ministers,” BCP Securities noted.

“He Economic Minister “The current minister recognizes that the economy is not expanding or recovering, and admits that the previous minister was too optimistic,” the investment bank noted.

The measures announced by the government are as follows:

1. Strengthening Municipal Finance: Municipal Popular Credit Banks and Municipal Savings and Loan Banks will adopt the capitalization agreement for gross profits earned in 2023. Monitoring by banking, insurance and private pension fund managers will establish sanctions for non-compliance.

2. Support to Small Agricultural Producers: A material transfer of 100 million soles has been approved for the Fund for the Financial Inclusion of Small Agricultural Producers (FIFPBA) as part of the “Plan Unitos” program.

3. Risk Classification Update: Financial Institutions (ESF) and Savings and Credit Cooperatives must have a risk classification equal to or higher than C to access the Impulso Myperu program.

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4. Road Infrastructure Maintenance: The Ministry of Development and Social Inclusion (MIDIS) will undertake maintenance activities on curb and local roads in rural areas with population less than or equal to 2,000 and cash poverty greater than or equal to 40%. 100 million soles have been approved for the transfer of goods to finance these activities.

5. Funding of MIPs for manufactured goods: An allocation of 290 million soles has been approved to the Ministry of Production (Manufacturing) to finance acquisition and distribution of manufactured goods by Micro and Small Businesses (MIBs).

6. REACTIVA PERU SOVEREIGN WARRANTIES: The General Directorate of the Public Treasury is authorized to honor guarantees issued within the framework of the Reactiva Perú program for liquidated loans.

7. Distribution of food to vulnerable people: Local district governments can identify new beneficiaries for distribution of food baskets within 30 days from the computerized system made available by Midis.

8. LIABILITY AND LIMITATION ON USE OF RESOURCES: Holders of approved specifications are responsible for the proper use of the resources and cannot use them for purposes other than those for which they are transferred.

9. Recognition of Sovereign Guarantee Honours: It is authorized to honor guarantees provided within the framework of the Reactiva Perú program for liquidated loans.

10. Temporary suspension of levies: On Financial Responsibility and Transparency of Regional and Local Self-Governing Bodies Legislative Decree No. Provision of 1275 is temporarily suspended till December 31, 2024.

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Published: 3/17/2024


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