on Wednesday indicated that defining a general elections date, by Congress, will contribute to maintaining the stability of outlooks on Peru's macroeconomy.
"Moody's has maintained our rating, but the outlook has been changed. What does it mean?" Contreras
"So, what we will do now is continue coordinating with the rest of the rating agencies to tell them that there is a recovery plan, that there is an exit route towards institutional and political improvement. I think that defining the date of the elections will be key to helping maintain stability again," he added.
The Cabinet member recalled that the Executive Branch had already submitted a proposal to Parliament, which must be discussed because it is essential to define the date of the next general elections.
"As a summary, any source that generates uncertainty in the country must be removed. This is going to make rating agencies calm down a bit, and our objective, as the Ministry of Economy and Finance (MEF), is that in the following months we can reverse the outlook from downward to stable,"
he pointed out.
The government official emphasized that Moody's rating agency has reaffirmed Peru's rating at BBAA1, which is equivalent to saying BBB+ by other rating agencies.
"Our rating has not been revised down; what Moody's has done is say that they could revise it down, that is important (to be known). What does it mean? That even in a context like the current one, Peru remains strong and resilient. So, the fact that new elections are called should indeed lead us to action, try to once again carry out institutional improvements so that Moody's does not lower our rating in the next review," Contreras
"It is a warning that we are considering. I had the opportunity to meet with the head of Moody's in London; I explained to her the situation in Peru. I think all these factors have helped Moody's understand that Peru is still a strong economy, a sound economy that has just left a coup behind; it is important to mention that,"
said that what was reported by Moody's will not have any impact in terms of investment. Nonetheless, measures must indeed be taken.
"What could affect us is a rating reduction, which has not occurred. First, we have coordinated with Moody's itself, explaining to them (officers) what is happening and that we are bolstering the reactivation," he concluded.