Andina

Peru Gov't: US$1.41 billion guaranteed for economic revival

17:48 | Lima, Mar. 25.

Economy and Finance Minister Maria Antonieta Alva on Wednesday affirmed that the Government has S/5 billion (around US$1.41 billion) guaranteed for the economic revival phase, once the mandatory social isolation —imposed to prevent the spread of COVID-19 in the country— comes to an end.

"We have a significant fiscal space that will allow Peru to face this crisis. We have spared no resources during the containment stage and neither will we do so in the economic revival phase," she expressed during a press conference.

Minister Alva explained that this revival will be fueled by greater public investment and the creation of temporary jobs. "These are some of the aspects we are looking at," she said.

According to the government official, the amount of money to be used during the reactivation stage might be greater than S/5 billion (around US$1.41 billion), but this will depend on the real impact on the Peruvian economy.

Containment stage

The cabinet member recalled that the economic plan prepared by the Government —in order to mitigate the impact caused by the coronavirus (COVID-19) spread— consists of two parts: the current containment stage (while social isolation occurs) and the reactivation stage.

In this sense, the minister noted that a total expenditure of S/16 billion (about US$4.54 billion) is destined for the possible scenarios.

"This is complemented by measures adopted by the Superintendence of Banking, Insurance, and Private Pension Fund Administrators (SBS) —which have to do with the reprogramming of debts— and those by the Central Reserve Bank (BCR) to maintain liquidity in the financial system," she stated.

Remarks were made in a televised Address to the Nation, within the framework of a 15-day mandatory social isolation imposed to prevent the COVID-19 from further spreading in the South American country.

On this occasion, the President was joined by members of the Council of Ministers and other authorities. The event was held at the Government Palace in Lima.

Wednesday marks the tenth day of mandatory social isolation.

END) RGP/JJN/RMB/MVB

Published: 3/25/2020