Alfonso Bustamantepresident of the National Confederation of Private Business Institutions (Confiep), warned of the risks that the country would have with the risk rating agencies if more money is allocated to Petroperu.
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“Peru has a financial responsibility that has earned us respect in the international community. We must keep the fiscal deficit within the target range so that it does not exceed a set percentage. This year we are already exceeding it for two quarters and continuing to put money into Petroperú would increase fiscal income,” he assured RPP.
He also noted that increasing public spending will lead to a larger fiscal deficit, which could pose a risk to Peru’s credit rating.
“In this case, public spending does not generate more resources, so we do not have growth and we will have a larger deficit. The risk rating agencies will be more concerned because Petroperú will not meet its obligations to bondholders and confidence in Peru will decline,” he said.
Bustamante said that the state-owned company is in a difficult situation, because if more money is injected into it, “the risk rating will be negative and financing will become more expensive for all Peruvians.”
“Those who suffer the most are the smallest. To carry out these large projects in Peru, external and internal financing will have become more expensive and the expenses will be greater,” he said.
EXECUTIVE RESPONSIBILITY
The president of Confiep said that the situation of the state oil company is the responsibility of the Executive. However, he pointed out that a decision must be made that benefits all Peruvians.
“I think the decisions taken by the board of directors are correct and it is extremely worrying that the government itself is the one that does not support when a solution is proposed. The only explanation I can have is that there is a political background, because there is none, technically or financially,” he said.
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