Andina

Fin Min: Peruvian bonds pay lowest interest rate in LatAm

Photo: ANDINA/Diffusion

Photo: ANDINA/Diffusion

18:33 | Lima, Dec. 17.

Economy and Finance Minister Pedro Francke on Friday affirmed that Peru pays the lowest interest rate in Latin America over the issuance of bonds on the international market, which proves a very important fiscal sustainability.

"We have relied on an extremely prudent fiscal policy, and this has allowed global bonds issued by Peru on the international market to pay the lowest rate in the region," he expressed during the closing of the 32nd Annual Research Seminar organized by the Consortium for Economic and Social Research (CIES).

The Cabinet member assured that Peru has issued bonds at a rate of 2.6% for two years, whereas Chile, Colombia, Mexico, and Brazil have to pay much higher rates. 

"This proves that we rely on a very important fiscal sustainability," he underlined.


"We have managed to reduce the public deficit to 3% of GDP. Initially, in 2020, the deficit was approximately 9% of GDP. Later, we crafted the budget considering a deficit of 6%; however, our recovery has been much faster," he noted.

Moreover, the economist commented that the reactivation is the "mandate of the moment," adding that the Government is fulfilling that task.

"We are putting all our efforts to strengthen the health system through the universal vaccination campaign, supporting the most vulnerable households through subsidies, in addition to boosting public and private investment," he noted.

Concerning subsidies, Minister Francke highlighted the launch of the Yanapay Peru grant, as well as the strengthening of Trabaja Peru (Work, Peru) Program aimed to provide temporary jobs and the transfer of capital for housing and public infrastructure.

"The implemented health and economic measures have allowed us to lead a rapid economic recovery and reach a GDP level higher than those of the pandemic," he concluded.

(END) VLA/MVB

Publicado: 17/12/2021