Peru adheres to the OECD Declaration on International Investment
31/07/2008 - Peru has become the 41st adherent to the OECD Declaration on International Investment and Multinational Enterprises, in recognition of its impressive progress in pursuing investment policy reforms to improve the country's business climate and reduce poverty. These initiatives have helped drive robust economic growth and vibrant foreign direct investment flows.
As an adherent to the Declaration, Peru commits to treating foreign investors in the same way as domestic investors and to promoting responsible business conduct. The country in turn benefits from similar assurance from the other adherents to treat Peruvian investors abroad fairly and to encourage their multinational enterprises operating in the country to contribute to economic, social and environmental progress.
Implementation of the Declaration also involves the establishment by Peru of a National Contact Point to be located in Peru’s Private Investment Promotion Agency (ProInversión) responsible for promoting observance of the OECD Guidelines for Multinational Enterprises, an integral part of the OECD Declaration. As an adherent, Peru will participate in the work of the OECD Investment Committee with the ten other emerging economies that are adherents to the Declaration: Argentina, Brazil, Chile, Egypt, Estonia, Israel, Latvia, Lithuania, Romania and Slovenia.
Peru’s adherence provides further international support for the principles of sound investment policy and corporate responsibility laid down in the Declaration.
Peru's adherence is the result of a thorough review of its investment policies by the OECD to be published in autumn 2008.
For more information, journalists should contact Blanka Kalinova, OECD Investment Division (tel. + 33 1 45 24 89 23).
Thursday, July 31, 2008
Friday, July 25, 2008
Peru: The ABC of investment grade*
Info provided by the
American Chamber of Commerce of Peru (AmCham Peru)
In the past days Peru has received much to its surprise and satisfaction the qualification of investment grade, given by the prestigious risk qualifying agency Standard & Poor´s, adding itself to the one given by Fitch Ratings in the recent past months, these plus the favorable development of our economy, are all contributing factors for the consolidation of the Peruvian image as an ideal destination for investments. Let me explain you how.
But first, it is necessary to remember that investment grade is nothing more than the reflection of the perception of international agents in reference to the capability of a country to pay its financial obligations on a timely fashion. And in a globalized world economically integrated, it is essential for investors to rely on accurate sources of information – like the ones issued by these risk qualification agencies - in order to take correct business decisions when choosing the destination of their investment and their capital.
In this manner, the diverse risk levels established by qualifying industries internationally renowned like Moody’s; Standard & Poor’s y Fitch Ratings, are huge especially for a country because they can determine the competitive financial interest rates that have the right impact to attract the right investments. In order for these qualifications to be issued, independently from individual methodologies, the agencies usually monitor the evolution of macroeconomic, political and institutional indicators, and proceed to classify the countries with debt in three big groups depending on the level of risk: investment grade, speculative grade and highly speculative grade. Hence, by being qualified as a country with investment grade, Peru now belongs to the category of countries that have better perspectives of payment and less risk, which in turn, opens a world of new possibilities before our eyes.
This important acknowledgement that only certain Latin American countries have, countries like Mexico, Chile and El Salvador, responds to the correct handling of the macroeconomic by several governments that knew to give continuity to an economic model based in fiscal and monetary discipline as well as market opening. Nevertheless, the aggressive pre-payment of the external debt done by the minister Carranza and the recent advances in trying to reduce poverty may be the reasons why our country has gained such recognition.
Therefore, dear reader, in spite of the happiness that these type of recognition gives us, it is important to admit that there is still an agency that not only doesn’t consider us at the state of investment grade but places us two steps down of such ladder, due to economic factors as the high level of dollarization of the economy, and others like the weakness of our institutions, which by the way, we should confront once and for all in order to increase our competitiveness as well as to consolidate sustained growth and abolish poverty and inequality.
Info provided by the
American Chamber of Commerce of Peru (AmCham Peru)
In the past days Peru has received much to its surprise and satisfaction the qualification of investment grade, given by the prestigious risk qualifying agency Standard & Poor´s, adding itself to the one given by Fitch Ratings in the recent past months, these plus the favorable development of our economy, are all contributing factors for the consolidation of the Peruvian image as an ideal destination for investments. Let me explain you how.
But first, it is necessary to remember that investment grade is nothing more than the reflection of the perception of international agents in reference to the capability of a country to pay its financial obligations on a timely fashion. And in a globalized world economically integrated, it is essential for investors to rely on accurate sources of information – like the ones issued by these risk qualification agencies - in order to take correct business decisions when choosing the destination of their investment and their capital.
In this manner, the diverse risk levels established by qualifying industries internationally renowned like Moody’s; Standard & Poor’s y Fitch Ratings, are huge especially for a country because they can determine the competitive financial interest rates that have the right impact to attract the right investments. In order for these qualifications to be issued, independently from individual methodologies, the agencies usually monitor the evolution of macroeconomic, political and institutional indicators, and proceed to classify the countries with debt in three big groups depending on the level of risk: investment grade, speculative grade and highly speculative grade. Hence, by being qualified as a country with investment grade, Peru now belongs to the category of countries that have better perspectives of payment and less risk, which in turn, opens a world of new possibilities before our eyes.
This important acknowledgement that only certain Latin American countries have, countries like Mexico, Chile and El Salvador, responds to the correct handling of the macroeconomic by several governments that knew to give continuity to an economic model based in fiscal and monetary discipline as well as market opening. Nevertheless, the aggressive pre-payment of the external debt done by the minister Carranza and the recent advances in trying to reduce poverty may be the reasons why our country has gained such recognition.
Therefore, dear reader, in spite of the happiness that these type of recognition gives us, it is important to admit that there is still an agency that not only doesn’t consider us at the state of investment grade but places us two steps down of such ladder, due to economic factors as the high level of dollarization of the economy, and others like the weakness of our institutions, which by the way, we should confront once and for all in order to increase our competitiveness as well as to consolidate sustained growth and abolish poverty and inequality.
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