Delivery of food and financing to mypes: the measures that the Government has taken to reactivate the economy

In a context of economic slowdown, the Government has launched a series of strategies focused on reactivation. These measures, reflected in a recent emergency decree, aim to strengthen various sectors, boost investment and generate employment. With a comprehensive approach, the aim is not only to recover growth levels prior to the crisis, but also to lay the foundations for long-term sustainable development.

Among the actions announced, initiatives to improve infrastructure, tax incentives for companies, support for entrepreneurs and measures to promote domestic consumption stand out.

Why did the Government take these measures to reactivate the economy?

The actions implemented originate in a scenario in which the Peruvian economy faces several risks that could impact the development of the aforementioned activity, including:

• Continuation of high levels of inflation.
• Increase in monetary policy interest rates.
• Slowdown of the Chinese economy that could result in a reduction in demand for raw materials, which includes copper from emerging nations such as Peru.
• Environment of geopolitical tensions.

What are the 10 measures for economic reactivation?

The emergency decree that proposes the following measures will be in force until December 31, 2024, except article 4, which applies until June 30, 2024.

1. Strengthening Municipal Funds: capitalization of 2023 profits for the Municipal Popular Credit and Savings and Credit Funds, with sanctions for non-compliance established by the Superintendence of Banking, Insurance and Private Pension Fund Administrators.
2. Support for small agricultural producers: transfer of S/100 million to the Fund for the Financial Inclusion of Small Agricultural Producers (FIFPPA) as part of the Plan Unidos economic reactivation plan.
3. Risk classification update: Financial System Companies (ESF) and Savings and Credit Cooperatives must have a risk classification equal to or greater than C to access the Impulso Myperu program.
4. Road infrastructure maintenance: transfer of S/100 million for the maintenance of roads in rural areas with high poverty, executed by the Ministry of Development and Social Inclusion (Midis).
5. Financing to mypes for manufactured goods: transfer of S/290 million 175,391 to the Ministry of Production (Produce) for the acquisition and distribution of manufactured goods (school kits) by micro and small businesses.
6. Sovereign guarantees Reactiva Peru: authorize the General Directorate of the Public Treasury of the Ministry of Economy and Finance to honor the guarantees that were granted within the framework of the Reactiva Perú Program for loans.
7. Food delivery to vulnerable population: Local district governments must identify those who did not receive the delivery of the food basket, according to article 38 of Law No. 31728, and proceed to register new beneficiaries who meet the same identification, selection and registration criteria.
8. Responsibility and limitation on the use of resources: The holders of the authorized specifications are responsible for the implementation and proper use of the resources, which cannot have a different purpose for which they are transferred.
9. Authorization of sovereign guarantee honors: allow the General Directorate of the Public Treasury of the Ministry of Economy and Finance to honor the guarantees that were granted within the framework of the Reactiva Perú Program to the loans that were the subject of reporting operations with the Central Reserve Bank of Peru.
10. Temporary suspension of tax regulations: Until December 31, 2024, the provision related to Fiscal Responsibility and Transparency of regional and local governments is annulled.