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Peru's new finance head to split party politics from government

Ezra Fieser and María Cervantes, Bloomberg News on

Published in News & Features

BOGOTA, Colombia — Peru’s finance minister called for a “clear separation” between party politics and the government, addressing a key investor concern on his first day in the post.

Pedro Francke wrote on Twitter Saturday that President Pedro Castillo’s Cabinet “will defend the need to have a clear separation between the government and the party,” while recognizing the party is essential.

Francke, a former World Bank economist, was sworn in late Friday night after being tapped by Castillo, a former teacher and union leader who won the presidency this year by consolidating Peru’s left-wing. Earlier in the day, the sol fell to a record low and bond yields rose to the highest in seven weeks amid a sell-off of Peruvian assets after the president failed to appoint a finance minister on Thursday during a ceremony to name his cabinet.

 

Francke, 60, is expected to largely preserve Peru’s macro-economic policy, while fighting unemployment and focusing on social spending.

“We urgently need to recover employment while respecting private property, ensuring the proper functioning of markets, and promoting private and public investment,” he said. Under his leadership, the finance ministry will aim to help the country’s “most vulnerable, responsibly promoting the change that Peruvians expect,” he added.

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