Peru Rocket Takes Off
Peruvian President Alan García is a man on a mission, calling for revolutions to transform the country. Investors adore the credit, but there are nagging concerns.
by Lucien Chauvin and James Crombie
In a world turned upside down, where Brazilian companies buy troubled US firms and investors sell G7 securities to buy LatAm debt, Alan García is the perfect LatinFinance Man of the Year for 2008. Past winners have included heroes who turned out to be rogues, like Alberto Fujimori. This Peruvian president turns the sequence on its head.
García was the best of a bad choice in a choppy 2006 election and his metamorphosis from arch villain to leader of the hottest LatAm economy in a second incarnation has surprised everyone. But no other Peruvian president has had the strong economic tailwinds enjoyed by García, who appears to have succeeded in spite of himself.
Besides stellar growth of 8.99% in 2007, Peru has extended the local currency curve to 30 years, repaid Paris club debt, revamped local markets and signed a free trade agreement...
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