Living in Peru : your everyday companion

The associate director for sovereign ratings at Standard & Poor's, Sebastian Briozzo, reported that Peru is well-prepared to face the financial crisis, although he considered that it should take some precautions.

“This helped Peru to be awarded with the investment grade”, he said.

Briozzo pointed out, for instance, that Peru does not have financing needs in the international market, which allows the country to be apart of these world effects for an extended period (in some way and as long as it is possible).

“Obviously, it can never be isolated from everything, because I consider that due to the severity of the crisis that will affect the global economy, the effects will impact the economic activity. However, I don’t think these can be of such dimension that can finally affect the world financial system”, he added.

The Standard & Poor's analyst recalled that in the past a financial turbulence was channeled rapidly to the regional economies.

“Countries refinanced its debts with the international markets, among other measures, turning these into more dependent and less solvent countries. Today, the situation is different”, he said.

Briozzo indicated that in the case of Peru, this is not a problem anymore.

“Peru was protected with correct and good macroeconomic policies of debt management. However, even though the financial channel is moderated, Peru will also have to take some preventive measures”, he added.