Peru Sees Increased Local Currency Issuance . . .

Luis Carranza Ugarte, Peru’s finance minister, predicts 2007 issuance of local currency debt could surpass the $700 million outlined in the annual debt management program. “As we conduct our liability management, that amount [of $700 million] could increase possibly twofold,” he told LatinFinance Thursday. Funds from new bonds to be issued in Soles will also be used to reduce the country’s dollar-denominated debt in an effort to cut its foreign currency exposure, as part of Peru’s aggressive liability management strategy. The finance minister also notes that Peru will implement capital markets reforms with a view to increasing competition, developing new financial instruments for small and medium-sized companies as well as mortgage market products.