Peru Prepares Repo Market Launch

Peru is just a few months away from launching its Repo market, José Arista Arbildo, vice minister of finance, tells LatinFinance. “We hope that by the end of the year, that market will be ready to go,” says Arista, who adds that the exact timing for a first trade is not etched in stone yet. The program will begin with providing repo for the sovereign’s most liquid local currency bonds, including the 2037, 2026, 2020, 2017, 2015, 2011 and 2008 maturities. The immediate goal is to give long-dated instruments liquidity and stimulate secondary market trading, says the minister. Currently, the government is working with other market participants, including the Central Bank, to standardize the repo contract and get the platform ready to start trading.