MEF: International investors trust Peru’s prudent economic management

MEF: International investors trust Peru’s prudent economic management

LIMA, June 2 (NNN-ANDINA) — Peruvian Economy-Finance Minister Alex Contreras said that the demand registered for Peruvian bonds reaffirmed the confidence of international investors in the prudent management of Peru’s economy.

“It is like investing money in a country for 10 years. This means that there is confidence in a prudent management of the economy, that there will be conditions for growth, as well as in the strength of our currency. That is why we are satisfied,” he told Andina news agency.

Last Wednesday, Peru carried out a successful debt operation in the international market, with a demand that indeed doubled the supply.

Using the terms of the Sustainable Bond Framework, the first issuance of a sustainable bond in Peruvian Soles was made worth S/9.185 billion, which is equivalent to approximately US$2.500 billion, maturing in 2033.

According to Contreras, there is also support for President Dina Boluarte‘s administration.They are confident that there will be a context of political stability,” he expressed.

The Cabinet member said one of the reasons why it had not been possible to enter the international market in 2022 was because investors had many fears despite the fact that our currency had shown signs of strength.

The government official explained that the stabilization of the social situation and the economic recovery process contributed to dispel said fears.

“To this is added the confidence that there is in the Con Punche Peru Program, which is key in the economic recovery process, he noted.

Contreras recalled that in past times foreign investors used to be more optimistic about our economy if compared to domestic investors.

“Now, what we see is that optimism is spreading. Everyone begins to trust Peru, and this generates a greater capacity to attract investment; it is just what our country needs at this time, he remarked.

The minister stressed that this operation marked the return of Peru to the international market, after almost four years, with an operation in Peruvian soles and with a single bond —in a context that has been difficult for Peruvian economy.

We have suffered very hard blows due to Yaku (Cyclone), social conflict, Coastal El Niño (phenomenon), and the risk of a Global El Niño,” he commented.

The high-ranking official stressed that despite this environment, investors’ confidence in Peru was reaffirmed.

“It is one thing for them to say in a survey that they are optimistic, and another thing is that they are willing to invest almost S/20 billion (about US$5.44 billion) in our bonds,” he pointed out.

Minister Contreras underscored that Peru has had the luxury of proceeding with the issuance in domestic currency considering its strength and stability.

The MEF’s head mentioned that on his recent trip to New York City, he was also able to meet with real sector’s investors.

“We were able to observe that confidence in our economy is evidenced in several sectors, not only in the financial sector, but also in activities such as the construction and development of different types of infrastructure, among others,” he indicated. — NNN-ANDINA

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