Economy and Finance Minister Alfredo Thorne said Peru currently has few financing needs and, if necessary, it will resort to the local sovereign bond market.
“We have a few financing needs nowadays. We don’t need further access to bond issue, we are not going to do this,” he commented.
Thorne recalled the previous Government left two credit lines —worth US$2.5 billion— underway with the World Bank, and this will help finance the deficit quite easily.
“We also have the opportunity to resort to the local sovereign bond market; our priority is to get financing denominated mostly in domestic currency, foreseeing the US Federal Reserve may hike its interest rates,” he indicated.
Thorne explained the Government is planning to anticipate the risks that it might have to face in the future, such as the rise in Fed interest rates.
“When it was rumored the US Federal Reserve was going to raise its rates, our currency started to falter, because part of our debt is denominated in dollars,” he continued.
(END) CNA/RMB/MVB
Published: 8/25/2016