Americas Quarterly – Peru’s Humala Aims to Reassure Investors

Americas Quarterly – Peru’s Humala Aims to Reassure Investors.

“Ollanta Humala’s 2.95 percentage point win in Peru’s presidential election on June 5 triggered the local stock index’s biggest crash ever… But the IGRA index recovered the 12.5 percent it lost on Monday almost immediately and stability and calm have since prevailed in Lima.”

“After his victory, he later reaffirmed with several international news agencies that he would not follow the model of his former political mentor, Venezuelan President Hugo Chávez, and reiterated promises to manage the economy prudently.  … Humala said he wants to “use Brazil as an example which has already had plenty of success.””

“Humala says he does not plan to impose any new taxes on companies, aside from a tax on the windfall profits of the vast mining sector, which would only kick in when metals prices are fetching higher prices on international markets. Fujimori also supported the tax. But Humala, in yet another peace offering to the private sector, told Reuters on June 7 that he planned to negotiate the tax rate with mining firms, taking their profit margins into account.”



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