Peru Seen Unchanged by New FinMin

No change is expected to Peru’s economic policy following the appointment of former IMF economist Luis Valdivieso to lead the finance ministry. “The Garcia administration continues to resist wage pressures and has used the commodity windfall to invest in infrastructure, pay down public debt and increase assets, a strategy which Fitch believes the new finance minister will maintain,” says Theresa Paiz Fredel, a senior analyst at Fitch. Others agree. “We believe that in Peru there is a consensus around an economic policy that favors growth without neglecting the social component. In that regard, we believe that the change of Luis Carranza for Luis Valdivieso represents a continuation of this economic policy,” says Alejandro Grisanti, LatAm analyst at Barclays. Valdivieso was sworn in yesterday by Peruvian president Alan Garcia, hours after S&P raised the Andean nation to investment grade. Fitch also rates Peru high grade.