Credit granted by Peru’s banks and non-bank deposit-taking financial institutions to the private sector grew 20.9% at constant exchange rates in the 12 months ending April over the same period in 2005-06, the central bank (BCRP) reported. During April, credit recorded a monthly growth rate of 3.2% from a rise of 2.8% registered in March. Sol-denominated credit to the private sector rose 39.2% to 28.5bn soles (US$9.38bn), while US dollar-denominated credit to the private sector rose 10.4% to US$12.4bn. Credit growth was mainly driven by bank lending. Private sector and state-run banks accounted for 76% of sol-denominated credit to the private sector and 88% of US dollar-denominated credit to the private sector at end-April. As of April 30, US dollar-denominated loans as a share of total loans granted to the private sector reached 58.0%, down from 64.5% at end-April 2006. Dollarization of credit to the private sector by type of institution was as follows at end-April: private sector banks, 63%; state-run banks, 22%; microfinance institutions, 35%; non-bank finance companies, 9%; mutual funds, 60%. Credit to the private sector accounted for 21.7% of Peru’s GDP at end-April, according to BCRP. (BusinessNewsAmericas)
On Monday Peru’s Gestión Newspaper mentioned that according to the General Manager of the Bank Association of Peru (ASBANC), Enrique Arroyo stated that there are two foreign banks have Peru in their sights. Sources in the financial system reveal that the next bank to come to Peru wiil be Deutsche Bank from Germany.
Peru’s mining exports rose 5.3% year-on-year in May to US$1.29bn and 15.3% to US$5.91bn in January-May, according to the latest report by state export promotion agency PromPerú. PromPerú, formerly Prompex, reported that revenues from copper sales abroad rose 7.80% to US$548mn in May and 21.0% to US$2.35bn in the first five months of the year. However, gold export revenues dropped 12.6% in May to US$322mn and by 6.8% in January-May to US$1.52bn, while silver was down 7.4% in May to US$41.6mn but up 18.5% at US$222mn in the first five months of 2007. Zinc sales abroad totaled US$187mn in May, a 28.4% year-on-year rise, and US$990mn in the first five months of 2007, up 82.2%. Lead sales skyrocketed 144% in May to US$95.8mn at 70.3% to US$394mn in January-May, while iron ore rose 5.5% in May to US$24.0mn and 7.9% to US$117mn in the first five months of the year. Peru’s steel and metallurgical exports were up 11.3% to US$73.2mn in May and rose 26.4% to US$318mn in January-May compared to the year-ago period. Non-metallic mining export revenues inched up 3.0% to US$11.6mn in May and rose 12.5% to US$58.9mn in January-May. (BusinessNewsAmericas)
‘The Enterprising Presidency: Mobilizing Business for Economic Growth and Social Change’ is the theme of the latest in the Distinguished Lecture Series of the Cyprus International Institute of Management (CIIM), to be held at its premises on Thursday, June 28, at 7 pm. The speaker is Dr Alejandro Toledo, former President of Peru, internationally acclaimed economist and Distinguished Fellow at Stanford University in the US. Dr Toledo, a charismatic personality born in absolute poverty, rose to fame and power to become the first democratically elected President of indigenous descent in Peru in 500 years. He won the elections in 2001, after leading his country’s revolt against the despotic Fujimori regime. He remained in office until 2006 and, in the space of five years, he managed to increase the Peruvian economy’s rate of growth to an unprecedented, for Latin America, six percent, while reducing inflation to 1.5% and fiscal deficit to 0.2%. With free trade agreement negotiations his government generated new investments and new jobs in Peru, cutting extreme poverty by 25%, while increasing employment by 6%. (read entire article at financialmirror.com)
Peru’s state agency for promoting private investment ProInversión will award by December the urban train project connecting capital Lima and neighboring port city Callao, ProInversión reported on its website. There is currently a 9.2km line – upon which circulates 32 cars, and which has seven passenger stations – that connects districts Villa El Salvador and San Juan de Miraflores, which cost US$320mn. But "explosive" urban and economic growth in Lima has caused an increase in required mass transport services, the agency said. As such, the new concessionaire will be responsible for the design, partial financing, construction, operations and maintenance of a new, 11.7km line connecting districts Villa El Salvador and Hospital 2 de Mayo. The rail – with an estimated price tag of US$260mn – will travel an average of 40km/h and the new system will have nine stations.The concessionaire will recover its investment principally by charging passenger fares, while publicity sales will augment its income. The maximum term of the concession is 40 years, which may be renewed. Still pending is the conclusion of a study regarding the amount of co-financing the state would have to provide for the project. ProInversión expects to hand over the finalized study by July 25 to economic and finance ministry MEF for approval. At the same time, studies on the passenger demand on the line need to be updated. Three Spanish firms – Taryet, ALG and Typsa – have had their technical proposals approved under the Andean Development Corporation-backed project. Economic proposals will be opened in July, after which the winning bidder will be declared. The winner will have four months to finish the study. (BusinessNewsAmericas)