Moody’s: Peru’s justice reform seen as favorable by investors

The justice reform promoted by Peru is seen as favorable by a group of foreign investors, Moody’s Investors Service Vice-President Jaime Reusche affirmed on Monday.

“From foreign investors’ point of view, Peru is pursuing a proactive policy. They rarely go into much detail, but they see there is willingness (of the country) to engage in a process to improve institutions, which have always been the major weakness of Peru’s sovereign credit profile and which potential investors take into account before investing in the country,” the officer told Andina news agency.

“There are plenty of sectors that may benefit from the improvement of institutions and the justice reform,” Reusche added.

Peru has a good opportunity in the forestry sector, whose largest long-term investments are concentrated in Chile and Uruguay.

“Those countries offer lower-quality produce compared to Peru, due to our variety of wood. However, investments do not take place here because they lack legal certainty and contracts are not respected, unlike in countries such as Uruguay or Chile,” he affirmed.

However, the economist said there are seven bills that complement the justice reform —to be debated at Congress— although they do not speed up the processes.

“The lack of urgency seen at courts and in the judicial system is very frustrating. Never-ending processes do not encourage them (entrepreneurs) in order to provide them with legal certainty for their investments,” the officer stated.

“It (the justice reform) is a good step, but I think we are actually missing a little bit of the chance to go beyond what is proposed,” he concluded.


Fuente: Andina

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