The resources Peru relies on for post-disaster reconstruction following "Coastal El Niño" phenomenon disasters reach 8.6% of GDP, Economy and Finance Minister Alfredo Thorne affirmed on Wednesday.
Peru is currently at the mercy of "Coastal El Niño" phenomenon characterized by heavy rains, landslides and floods that have destroyed infrastructure and crops, as well as left many citizens homeless.
In this sense, the government official highlighted rebuilding damaged infrastructure will neither demand a tax rise, nor higher debt.
Similarly, he noted resources available to fund the required fiscal stimulus represent 8.6% of GDP.
Better-positioned
In this sense, the Minister noted such position "allows the country to have required funds at hand without turning to international markets."
"We are better-placed thanks to our macroeconomic strength," he added.
In this sense, Thorne noted the reconstruction process will be an opportunity to speed up the national economy.
Positive banking indicators
On the other hand, the Finance Minister commented on the country's banking profitability indicators, which are well-capitalized and have a 160% provisions to delinquent loan ratio.
Such ratio has allowed the Superintendency of Banking, Insurance and Private Pension Funds Administrators to allow a 6-month grace period to all credits in districts declared under state of emergency, he pointed out.
(END) DHT/MVB