Andina

Peru gov’t to launch incentive package to foster economy

Panoramical view of the Peruvian capital Lima. Photo: ANDINA/Carlos Lezama

14:36 | Lima, Jun. 07.

The Ollanta Humala administration is working a package of incentives to reactivate the Peruvian economy, the country’s Economy and Finance Minister Luis Miguel Castilla has said.
According to the senior government official, the measures, which must be approved by congress, include cutting bureaucratic procedures and taxes in various sectors, among others.

"Next week we will probably be approving ... maybe the most important economic incentive package of this administration," Castilla said, adding the measures will first be debated Wednesday by the council of ministers.

Moreover, Castilla said, Peru’s Administration plans to launch large-scale projects in the core sectors of mining, energy and infrastructure around the country to help reactivate the economy.

“Economic growth should improve in the second half of the year and in 2015, fueled to such megaprojects as the construction of the Lima Metro system, with an investment of US$ 5.56 billion,” the Andean nation’s minister said

He added, “This newly-awarded massive infrastructure project adds to the upcoming construction of the Southern Peruvian Gas Pipeline, which carries an investment worth more than US$ 4 billion”

The government's announcement was welcomed by the country's business sector, english.sina.com reported.

"It is important the Finance minister has come out to announce measures to convey confidence in the private sector, thus clearing away the uncertainty which is surrounding the economic sphere," said Cesar Peñaranda, senior official at Lima’s Chamber of Commerce (CCL)

In statements to Andina news agency, the director of the Institute of Economy and Business Development at the CCL praised the proposed measure for cutting down on red tape. 

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Published: 6/7/2014