Fitch: Peru's President Sagasti provides political calm to continue with economic recovery



13:02 | New York (U.S.), Nov. 19.

The Director of Sovereigns for the Americas at Fitch Ratings Kelli Bissett-Tom on Thursday affirmed that the appointment of Francisco Sagasti as President of the Republic provides Peru with the political calm it needs to continue its economic recovery process.

"It is important that this solution to the crisis has arrived quickly and in a timely manner. The new administration will have to handle the health crisis, consolidate the budget, and send important signs of recovery to international markets," the officer told Andina news agency.

She asserted that Peru has "social and economic scars" that must be addressed promptly.

"In addition, the new president and his Cabinet will have to agree with Congress on legislative proposals, including when and how to reform the pension system," she said.

According to the rating agency, the economic reform and the fiscal consolidation plans of the next administration will be important for the solvency of the country.

"In particular, a history of debt reduction during the 2003-2019 period and strong public financial institutions anchor the credibility of Peru's fiscal policy," she concluded.


Published: 11/19/2020
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