25-04-2012 10:57 Peru
MEF: Peru stronger to face deteriorating global climate
Lima (ANDINA). Peru is one of the countries in the region with the greatest strength to deal with any deterioration in the global economic environment, as it has the needed fiscal and monetary margins to mitigate any external shock, Finance Minister Luis Miguel Castilla said Tuesday.
"Peru is one of the countries in the region with the greatest strength to face any deterioration in the international environment and so say foreign analysts and the International Monetary Fund (IMF) and other entities," he said.
The minister said that Peru has the ability to cope with any external shock.
"While we are not immune to external imbalances, we have the tools necessary to mitigate any shock from abroad."
He noted that the country's strength lies in the registered public savings represented by a Fiscal Stabilization Fund (FEF) totaling 3.5 percent of Gross Domestic Product (GDP).
Moreover, Castilla stated that the Central Reserve Bank (BCR) has sufficient liquidity buffers and Net International Reserves (NIRs) which stand at over 30 percent of GDP.
He remarked that uncertainty continues in the international market, especially in Europe, but there are greater prospects for growth in the U.S.