Andina

Peru: Velarde willing to continue leading Central Bank

Photo: ANDINA/Vidal Tarqui

Photo: ANDINA/Vidal Tarqui

16:16 | Lima, Sep. 17.

Central Reserve Bank (BCR) Governor Julio Velarde on Friday reiterated his willingness to continue leading the issuing entity, confirming that he accepted the public proposal made by President Pedro Castillo. Yet he raised the need to avoid a conflicting board.

"I never wanted to hold on to the position. I was publicly offered to remain in the chairmanship (of the BCR), and I have accepted. Obviously, it is the decision of the President (Pedro Castillo) whether in the end he designates me or not (…)," Velarde expressed.

"When I have talked with him (the President), what we have discussed rather than board members, was that a conflicting board was not wanted," he pointed out.

The economist revealed that when he spoke with the President, Velarde told him about his experience at the BCR between 2001 and 2006 —when he served as governor for more than half of that period of time. At that time two previous governors had resigned: Richard Webb and Javier Silva Ruete.

"Later, I was offered the chairmanship, but I did not accept. Then, there were two others who did not accept (that position) either (...) there were never really so many resignations as in that period," Velarde explained.

"So, what I wanted is to avoid a conflicting board of directors, that was all, but (I was) not imposing directors or anything like that," he said.

During the presentation of the Inflation Report for September, the current BCR governor emphasized that no names for the new board have been announced. However, the profile being sought has indeed been addressed.

"With Economy Minister Pedro Francke we have discussed the profile of directors, and what we basically want is that they be technocrats. I have not spoken with Congress, only when the Parliament Chairwoman invited me and I told her that —given a principle of governance— it is not good that there are politicians (on the board of directors)," he recalled.

Velarde also commented that the Central Reserve Bank's task has always been to maintain stability, because if there is no stability, it is very difficult —and even almost impossible— to talk about growth.

"Only in periods of stability have we had growth, and what we have seen in recent years is that the Central Reserve Bank has always tried to keep this ship afloat," he remarked.

(END) CNA/JJN/MVB

Publicado: 17/9/2021