Andina

Fitch: Pursuit of Odebrecht case to improve Peru's institutional capacity

11:56 | New York (U.S.), Dec. 22.

The pursuit of the Odebrecht cases against high-level government officials will be an important step in improving Peru's institutional capacity, Director in Sovereigns at Fitch Ratings Richard Francis affirmed.

"It is important that the cases be seen as impartial and fair. As in other countries, there is still the possibility of set-backs in the process, however," he expressed.

Likewise, the officer indicated building and improving institutions takes time. 

Furthermore, Francis indicated the December 9 referendum sought to address some of the issues of corruption and institutions, including the judicial system.

"The judicial system is perhaps the most important institutional factor in the country's advance on improving its perception of corruption (level) and rule of law," the Director in Sovereigns added. 

In this sense, the Fitch representative pointed out the advances that the Inca country makes concerning political stability, rule of law, and control of corruption could improve the image of the country, leading to higher investment and economic growth.

"Improvements could also support improved sovereign creditworthiness," he said. 

According to Fitch, Peru's economy will grow 3.8% in 2018, driven largely by improvements in domestic demand both consumption and investment. 

Furthermore, the credit rating agency expects the economy to gradually accelerate to 4% growth in 2019, driven in large part by a continued expansion in investment.

Additionally, investment in the mining sector is expected to support growth over the next three years. 

(END) NDP/DTK/MVB


Published: 12/22/2018
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