Andina

Peru: Country risk down after proclamation of Pedro Castillo as President-elect

Photo: ANDINA/Diffusion

Photo: ANDINA/Diffusion

19:01 | Lima, Jul. 22.

The country risk has dropped slightly in recent days after the proclamation of Pedro Castillo as President-elect of Peru, going from 171 basis points on Monday to 169 bps today, InValor CEO Alonso Choquecota reported on Thursday.

"Various peaks have been reported in this indicator so far this year, reaching a peak of 188 bps on April 22, but a drop has been observed in recent days. Yet we cannot affirm that it will be steady," he told Andina news agency.

According to the consulting firm's executive, this slight decline is due to the fact that the corresponding authorities proclaimed Pedro Castillo as President-elect.

"This has brought a degree of calm to economic agents," he pointed out.

"There was a huge uncertainty about who was going to be the next President of the Republic and what was going to happen to the contested voting records. But as this issue has dissipated, the country risk drops," the chief executive officer explained.

New Ministerial Cabinet

Nevertheless, Choquecota commented that uncertainty still continues because the Cabinet members who will accompany Pedro Castillo during his mandate are still not known.

"There were two big uncertainties: one of them about who was going to be the president for the next five years, and the other about the approach to be adopted by the new Head of State," he expressed.

The InValor CEO explained that now that one of the uncertainties has been removed, there is a need to know the path that the President-elect will eventually follow.

(END) SDD/JJN/RMB/MVB

Published: 7/22/2021
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