Due to Peru’s efficient debt management, the World Bank has now improved Peru’s credit rating. This is an extremely beneficial status for Peru as it will be an opportunity to strengthen its financial stability and establish a more structured risk management system.
The World Bank and Peru work together in three programs:
The Government Debt and Risk Management’s (GDRM) purpose is to strengthen Peru’s debt and risk management capacity and to develop a liquid and efficient government securities market. The GDRM team trains Peruvian professionals at the Peruvian Debt Management Office to design debt management strategies.
The Disaster Risk Management program’s task is to build an efficient legal framework and financial strategy to handle financial risk in case of a natural disaster.
The third program is called The Capital Markets and Infrastructure Financing program, it seeks to develop domestic capital markets and to build up a strong infrastructure for financing public-private partnerships (PPPs).
The program is expected to give good results among investors and public entities according to the Rossana Polastri, Vice-Minister of Finance at the Ministry of Economy and Finance. This helps make the economy more resilient to financial shocks and give investors security.