LatinNews Daily - 19 May 2023

* The International Monetary Fund (IMF) has maintained Peru’s US$5.3bn flexible credit line (FCL) arrangement, following a mid-term review of the FCL approved in May 2022. Despite the severe civil unrest which swept Peru in the first months of 2023, the IMF was broadly positive in its assessment of the country’s economic prospects, highlighting “Peru’s very strong macroeconomic policies and institutional policy frameworks, sound economic fundamentals, and proven track record of policy implementation”. However, the IMF’s deputy managing director, Kenji Okamura, noted a slowdown in economic activity in 2022, which he expected to remain “subdued” in 2023. Despite this, Okamura said that “access to the Flexible Credit Line arrangement, along with sizeable international reserves, low public debt, anchored inflation expectations, and a sound financial system have provided the authorities with valuable insurance in a period of high uncertainty and volatility.”

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