Peruvian enterprises are in a good position to face Coastal El Niño weather phenomenon as they show better financial statements, the country’s Central Reserve Bank (BCR) said.
"Companies' financial results are quite solid. Firms have come up with much better [financial] statements by cutting costs. They have made a huge effort," BCR Governor Julio Velarde underlined.
In this sense, the BCR head noted mining companies have not only benefited in terms of profits and better metal prices, but also due to significantly lower costs.
He added both mining and industrial companies are increasingly becoming more efficient.
"This process has allowed companies to have a better stance to address the situation and, if demand bounces back, they'll be able to provide a more forceful response," he assured.
Mining
On the other hand, Velarde referred to the halting of mining shipments in Peru's central highlands due to Coastal El Niño torrential rains.
In this respect, he ruled out such interruption will affect the sector's performance, since it is "temporary."
Velarde noted mining firms are stocking up their warehouses and, if rains and landslides cease in some 10 days, the country's central railway could be restored.
(END) MDV/JJN/DHT/MVB