Press Release No. 06/224

Press Release: Statement by an IMF Staff Mission in Peru

October 20, 2006

The following statement was released today in Lima by an International Monetary Fund (IMF) mission:

"An IMF mission, led by Gilbert Terrier, has been in Lima the last two weeks to conduct the 2006 Article IV Consultation and discuss the new government's economic program that the authorities have requested to be supported by a Stand-By Arrangement from the Fund.

"The mission has been pleased to hold extensive discussions with government and central bank officials, and a broad spectrum of representatives from the business community, financial institutions, academia, and civil society. These discussions focused on the policy options for Peru to entrench its strong economic performance of the past several years and to give assurance that its benefits reach all segments of the population—key objectives of the government. The IMF mission has been impressed by the strong consensus in society on the need for Peru to take advantage of these favorable economic conditions to consolidate macroeconomic policies and pursue reforms that would enhance medium-term growth prospects and decisively reduce still high poverty levels.

"The discussions have been very productive. The IMF mission supports the key elements of the authorities' economic program for the period 2007-08. In the coming weeks, the authorities and Fund staff will finish specifying the remaining elements of the economic program. Both sides are working toward a timetable for presenting the program to the IMF Executive Board around the end of the year."