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Andean Group - April 2020

Economic Highlights

PERU | Economic stimulus. On 29 March Peru’s economy & finance minister, María Antonieta Alva, outlined plans for a US$26.4bn economic recovery package intended to mitigate the impact of the coronavirus (Covid-19) pandemic on the country’s economy. Alva reported that this package, equivalent to 12% of Peru’s GDP, will be divided into three parts: a first stage, to support containment efforts; then, to provide credit guarantees to companies affected by the quarantine measures adopted to contain the spread of the virus; and finally, to re-activate economic production after the health emergency has passed. The second stage was encompassed by the ‘Reactiva Perú’ loan programme announced on 6 April, providing US$8.69bn in credit to help businesses fulfil payment obligations to employees and suppliers during the quarantine period. Production Minister Rocío Barrios emphasised the importance of maintaining the “chain of payments”, so that one company’s insolvency doesn’t have knock-on effects for its business partners, or prevent its employees from receiving wages owed to them.

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