Peru’s business community reacted to Ollanta Humala’s election as president in June by dumping mining stocks, triggering the biggest plunge in Lima’s bourse in two decades. Now the one-time ally of Venezuela’s Hugo Chavez may be their best bet for defending $50 billion in mining investment.
When Alan Garcia ’s first term as president of Peru ended in 1990, the economy had shrunk by 10 percent, inflation was raging at 7,000 percent, and half the population lived in government-declared emergency zones where Maoist guerrillas were active.
The race to succeed President Alan Garcia of Peru, a country where one-third of the populace lives in poverty, may be decided in up-and-coming neighborhoods such as Independencia where children of peasants who fled the countryside now work and shop at the nation’s biggest mall.
Ollanta Humala campaigned for Peru’s presidency in 2006 wearing red T-shirts and expressing admiration for Venezuelan socialist leader Hugo Chavez . This year, he’s donning business suits and vowing to expand ties with investor-favorite Brazil.
Ollanta Humala convinced a bare majority of voters that Peru’s booming economy would be safe with him as president. Now he must calm nervous investors, starting with his choices for finance minister and the rest of his cabinet.
ICE Trust U.S. LLC, the world’s largest clearinghouse for credit-default swaps, withdrew its Nov. 12 application to the U.S. Commodity Futures Trading Commission to be registered as a designated clearing organization.