The Minister of Economy and Finance, José Arista, explained that the current Government is weak due to the lack of representation in Congress and that, therefore, the political instability has not been able to be reversed. This is in relation to the negative credit rating – made by S&P – which indicated that at Fitch Ratings we already had a negative outlook due to the instability in the country.
“It is a weak Government, without political representation. We do not have a surplus in the Peruvian economy. With Segura, for example, we have had a deficit of 2.1%,” he commented in an interview with RPP.
Regarding the S/500 million that will be allocated to the municipal governments, he explained that this amount will compensate for the reduction of the Foncomun and that at the latest at the beginning of next week the money would already be deposited in the municipal accounts.
On the other hand, he ignored the over-indebtedness of the Municipality of Lima, because what was done was “an emergency decree, but not a guarantee.”
In any case, he stated that the risk would lie with the bondholders who give him the loans. However, in the interview with RPP, he did not answer the question about who assumes the debt if the Municipality of Lima does not pay. He added that these days he would be meeting with the mayor of Lima.
Source: Larepublica
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