Alex Contreras: investors’ perception of Peru is positive and recognizes its economic strengths

Within the framework of actions to promote Peru among international investors and businessmen, the Minister of Economy and Finance, Alex Alonso Contreras, as well as officials from this portfolio participated in a road show and meeting with investors in the cities of Boston and New York, in the United States. The head of the sector reported that the perception of external investors is very positive regarding Peru, recognizing its economic strengths.

“Investors recognize the macroeconomic stability of Peru, the fact that inflation has already practically returned to the goal of the Central Reserve Bank. They recognize that, although 2023 was a complicated year, the fiscal numbers have remained stable. They have welcomed, for example, the impact and recovery of projects in the form of Public-Private Partnerships, which, in 2023, will have multiplied by 24 times in investment commitments.”

The participation of officials from the Ministry of Economy and Finance took place between January 23 and 26. In New York, the Minister of Economy and Finance, Alex Alonso Contreras Miranda, led an intense road show with global investors. These meetings represented an important opportunity to promote investment in Peru, to disseminate the country’s sectoral and regional economic reactivation plans, as well as its macrofiscal strengths.

For his part, the Deputy Minister of Finance, Rodolfo Baca, met in Boston with representatives of asset management companies, investment funds, infrastructure investors, among others, to publicize the investment potential and opportunities.

The meetings with investors were an opportunity to promote investments in the country, within the framework of which the country’s sectoral and regional economic reactivation plans were disseminated, as well as its macrofiscal strengths.

Likewise, the head of the MEF participated in the panel “Sovereign debt in Latin America, capital flows and macroeconomic challenges” of the Capital Markets Summita forum that he shared with economic representatives from countries such as Mexico, Uruguay and Chile, also taking part in the ringing of the New York Stock Exchange bell, which gave way to the event.

The summit was a space for global issuers and investors to discuss the direction that sovereign debt markets will follow during 2024, as well as the innovations that will be observed in corporate finance in the medium term. It brought together representatives who have a presence in the financial market, executives from international asset managers and global investment banks.

Minister Contreras indicated that although global investors see government bonds as very attractive, they have also shown a lot of interest in the issue of infrastructure.

“Peru has a very large infrastructure gap, we are talking about more than 30 points in terms of GDP and we are talking about more than 300 billion soles. So, there they see an opportunity for Peru to accelerate the closing of the infrastructure gap. I told them about some important projects that we are unblocking, for example, Chavimochic, we have already unblocked it, we are in projects such as the Yanapujio and Iruro dams, the new peripheral road ring and the central highway, which will strengthen the country’s competitiveness.” I explain

Finally, the Minister of Economy and Finance received recognition from Latinfinance to the Government of Peru for the best sovereign liability management operation of the year, for the successful placement of bonds for S/ 9,185 million (approximately US$ 2,500 million) to a rate of 7.3%, being one of the most significant transactions carried out in the region during 2023 and which allowed the country’s sovereign debt profile to improve.

«This transaction was very important for the country from different points of view. It was a positive result as it attracted strong demand from investors, with an oversubscription of 3.7 times, demonstrating that there is global interest in Peru, which will translate into a recovery of private investment in the future,” said Minister Contreras. upon receiving recognition. He also highlighted the government’s work to recover the economy, also achieving a solid fiscal position and a great boost to public investment.

The head of the sector highlighted in these forums the resilience of Peru, which is based on macroeconomic strengths, which is why he invited investors to continue betting on Peru.