“More than 50% of small businesses are on their way to bankruptcy due to the crisis in the country”

The mining companies in Cusco, such as Antapaccay, Las Bambas and Constanza partially paralyzed their activities. Does this situation have a strong effect on Arequipa’s economy?

Yes, because being part of the mining corridor, this stoppage reduces the economic activity that flows into Puerto Matarani. This flow of movement of trucks, drivers, carriers, suppliers, etc., are unfortunately affected.

Is it possible to measure it?

The initial impact I cannot determine now. We would have to know information from the other regions to estimate a number.

The entire south is a circuit, with Cusco being the main tourism destination, but now there is zero activity.

Tourism represents S/ 2 million per day. In Cusco, tourist visits have been relegated until July, as long as these stoppages cease and the restart of tourism is not further postponed. In Arequipa, having not passed through the Northern Cone or the Añashuayco bridge, there is no way to do tourism. He Colca Canyon it has received less than 2,000 tourists.

In January?

Yes, what is being generated is very poor. The average GDP of the tourism sector is generated by foreign tourists and this time it is local tourism.

How are you going to recover the image that has been lost?

The first is pacification (…) And the second, now more than ever we need our elected authorities. The electoral campaign is over and we need the regional governor as the leader of the pacification. We have to focus on the Arequipa region. We have to ask for calm, peace and put pressure on the Executive to guarantee that the roads will be free, that they allow us to do business. Let’s remember that, from the south, Arequipa is the region with the most industries. So who is most affected by these stoppages is Arequipa because they really commercial exchange with Puno, Juliaca and Cusco is interrupted. And 23% of Arequipa’s trade attracts what we can deliver to Cusco (…)

Due to the role that Governor Rohel Sánchez has played up to now, do you see him as a leader who can direct that pacification?

The governor has all the capabilities. He also acknowledges that he has been appointed president of the National Assembly of Regional Governors. But the electoral campaign is over. It’s time to represent our region well.

Because it says? The position that the governor has taken is to request the resignation of the president of Boluarte. That’s why?

Yes, but asking for the resignation of President Boluarte is adding fuel to the fire. What we have to ask for is pacification, tranquility, clean roads. And we have to see what we do to revive economically.

How much is this situation hitting small and medium-sized businesses?

He always hits the smallest one the most. According to INEI there are 180,000 formal microentrepreneurs. (He hits) someone who has a market table in Avelino and sells chicken, meat, pork, vegetables, fruit, and the dairy farmer whose supply to the buyer who is Leche Gloria is interrupted all the time. Already, those 5,200 dairy farmers disrupted their economy. It is S/ 4 million a day that Leche Gloria pays them, regardless of whether the price is fair or not, if it is interrupted, they simply no longer have cash.

If they do not have income, they fall into a serious economic problem. And so it happens with the baker who needs wheat (…) There is already a shortage of fruit.

The problem is that the trucks are waiting on the road, a lot of what arrives is already damaged. And what is left sells dearly.

Are businessmen having trouble paying their loans?

Microentrepreneurs already have problems paying their dues. To the one who continued with Reactiva 2, which was a refinancing that was generated, but at a commercial bank rate, with interest that is very expensive.

Is there a risk of bankruptcy of companies?

Of those 180,000 companies that are formal micro and small businesses, there is a large percentage of bankruptcy risk. At least more than 50% of small businesses are on the road to bankruptcy. Finally, the largest have a way to survive, not for a long period of time, but they do have more space to survive.

And which item would be the most affected?

Livestock, agriculture. The tourism sector that is asking for a Reactiva 3 because they cannot pay for 2. They want it to refinance their debts at low rates (…)

Why was Reactiva 2 refinanced with such high rates?

because initiallye the Reactive had the rules of Cofide, the State guaranteed the debt, they were low rates because it was the time of Covid. Not all have paid their debts, at the time of the regulations that allowed refinancing, the commercial rate was given. Therefore, it is time for the State to do something similar to what it did in Reactiva 1, for Cofide, the MEF to intervene and bail out companies that are very tight (…)
And the other issue is why not think about the income tax that must be paid from April having a period with a moratorium. That it be a fractionation with a grace period of 6 months and that at the same time the interest rate is so low that it allows paying the installments with the future sale that is sought to be generated.

Have they reached it as a proposal to the Executive?

It is a first proposal. The idea is to collect from all sectors to launch proposals to the Executive as a Chamber of Commerce. For example, the construction sector needs the Metropolitan Development Plan to reactivate (…). Majes Siguas II is showing signs of delay, we ask the regional governor to raise his hand, make the calls that he has to make and that it finally be released in April as the concessionaire has promised. Ask Autodema to do so if there are pending, because we are going to need economic recovery.

Regarding the political issue, on Wednesday Congress rejected the bill on the advancement of elections to 2023, and today another minority opinion is being debated that includes the Constituent Assembly. What do businessmen think of this proposal?

As time goes by and we don’t find solutions, the businessman begins to get desperate and looks for solutions. We are respectful of the Constitution, who assumed the government is because it has been the constitutional guideline that appointed her as president. We are also respectful of the role that Congress is generating. But we have to reach a consensus and that is that the elections that were initially proposed should be in April 2024, for the same reason that a year must pass to make institutional reforms or important reforms before they have to be done.

There is a survey by the Institute of Peruvian Studies that says that more than 70% agree that Mrs. Dina Boluarte resign from office and 90% reject this Congress. “Is it sustainable that both figures continue to be based on that statistic?

Statistics change very fast. All I’m saying is that the businessman is backing the military and police forces. They are the ones who are guaranteeing us compliance with the Constitution, the institutionality and are working hard so that there is free transit. The political issue is resolved by politicians, but quickly.

In this endorsement, is there any criticism? There are more than 50 deaths. There are videos where you can clearly see police officers shooting at citizens.

It is unfortunate that we have more than 50 deceased Peruvians. Regarding the videos, they have also been seen to have a way of showing themselves. But let us also remember that there are more than 250 injured policemen, there are also deaths among the police. The important thing is to reach calm, peace, tranquility. We have to recover that path and not the one we are practicing now.