Category: Peru

The pace of Peru’s economic growth quickened in November, increasing by 7.9% against October’s rate of 7.2%. The growth was driven in main by the mining, natural gas and fishing sectors, which increased output by approximately 50%, 70% and 30% respectively. Annual inflation last year is estimated to be 6.3%.

Peru’s Electoral Tribunal has ruled that former president Alberto Fujimori may not stand as a candidate in the country’s upcoming elections in April due to his ‘special disqualification’. Fujimori is currently being held under arrest in Chile awaiting extradition to Peru where he will likely face charges of corruption and human rights abuses. He resigned his presidency in 2000 after fleeing to Japan and in 2001 was banned from holding public office in Peru until 2011.

Ex president of Peru, Alberto Fujimori, has been registered by his eldest daughter and former ‘first lady’, Keiko Fujimori, and supporters as a candidate in the country’s presidential elections slated for April. This, despite being held under arrest in Chile awaiting extradition to Peru to face charges of corruption and human rights abuses. Fujimori, who resigned his presidency via fax in 2000 after fleeing to Japan, has been banned from holding public office until 2011. The Electoral Court is due to rule on his registration this week.

US firm Hunt Oil, which is involved in the Camisea natural gas project in southern Peru, is to issue $150 million of corporate bonds in the local market today, Tuesday. The issue is being arranged in Peru by Banco de Crédito.

Peru’s economy expanded 7.21% in October compared with the same month in 2004, driven by a strong mining sector (up 15%). GDP grew by 6% between January and October, compared with the first 10 months of last year, and in line with the government’s forecast for annual growth this year.

Peru has reopened its 2025 bond issue to sell a further $500 million, increasing the total amount of the offering to $1.25 billion. The bonds carry a coupon of 7.35% and were placed at a yield of 7.25%. The deal was arranged by Citigroup. Peru’s move to tap the international markets is part of its strategy to repay an $830 million loan to the Japan Peru Oil Co (Japeco). Last week it raised $238 million through the sale of local currency bonds, below its target of $273 million. Peru says it will settle the remaining $92 million through a further local currency bond offering or directly from Treasury funds.

Peru sold $238 million in local currency bonds, below its $273 target, as part of a strategy to repay a loan to the Japan Peru Oil Co (Japeco). The local bonds, which mature on 20 August 2020, carry a coupon of 8.74% and were placed at a yield of 8.15%. Peru needs to raise at least $830 million to repay the Japeco debt and hopes to make up the difference with an international tranche before the end of the year.

Jeanette Enmanuel has been named the presidential candidate of Peru’s ruling party Perú Posible for the upcoming elections next April. Enmanuel, who owns a natural medicines business – Santa Natura, has gone on record as saying she will not draw a presidential salary if elected. The businesswoman, who has no experience of politics, also said she would reduce the salaries of the national legislators.

Canadian Scotiabank has bought Peru’s third-largest bank, Banco Wiese Sudameris, from controlling shareholder — Italy’s Intesa in a private deal. The sale ends months of speculation regarding prospective investors. It is not yet known what Scotiabank paid for the Peruvian entity. Scotiabank is the third-largest in Canada in terms of assets. It also holds a minority stake in local Banco Sudamericano and controls Scotiabank Inverlat in Mexico.

Peru has raised its benchmark interest rate from 3.00% to 3.25%. This is the first time it has raised the rate since October last year. The currency, the sol, rose as a result from 15-month low of 3.4185 against the US dollar on Thursday. Peru’s inflation was running at 1.1% in the 12 months to November.