Peru has joined a selected group of economies that can issue 100-year dollar-denominated bonds with a low-interest rate, which is a sign of confidence among the global financial community despite the impact of the COVID-19 pandemic,
Moody's Investors Service Vice-President Jaime Reusche has affirmed.
As stated by Reusche,
the issuance was a milestone in the nation's financial history.
Thus, he explained, Peru has joined a group of few countries that have been able to issue 100-year bonds, including developed economies such as Austria, Denmark, and Ireland, as well as a few emerging economies such as Israel and Mexico.
According to the Moody's officer, the fact that Peru has issued bonds with such a maturity period and historically low-interest rate —a few weeks after
the political instability it experienced, which generated great uncertainty— constitutes a vote of confidence by foreign investors in the country.
Once again, he noted, investors have appreciated Peru's macroeconomic strengths —despite the political instability— as a result of the country's fiscal solvency, ample international reserves —which provide abundant liquidity to the foreign exchange market— and external accounts.
In addition —as always— investors have appreciated the country's good economic and fiscal management capacity.
"We have the perfect example of how important it is to be responsible on public finances and macroeconomic management," Reusche pointed out.
"The State can access cheap financing (at the lowest cost in Latin America), now that it needs a debt instrument to finance the fight against the pandemic, aid the most deprived families with financial grants, and reactivate the economy," he added.
Remarks were made by Moody's Investors Service Vice-President Jaime Reusche in an interview with
El Peruano official gazette.
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Published: 11/30/2020