Carolina Gonzalez and Stephan Kueffner, Bloomberg News

NEW YORK/QUITO
EnergiesNet.com 12 20 2022

Peru’s congress approved a constitutional reform to hold early presidential elections in a second bid to alleviate a political crisis that’s seen widespread unrest since former President Pedro Castillo was removed from office Dec. 7.

The reform passed by a two-thirds majority calls for early elections in April 2024, shortening the term of Castillo’s successor, Dina Boluarte, to July 2024. The reform will require another vote of approval by a two-thirds majority in the next legislative period. The current period ends Jan. 31, 2023. 

Boluarte, Castillo’s vice president who was sworn-in by congress, has repeatedly called for early elections along with substantial reforms to find a way out of the country’s political quagmire. She’s ruled out resigning, saying it won’t solve the crisis.

Peru’s dollar bonds dropped during Asian trading on Wednesday, extending their decline for the sixth straight day. Notes due 2031 were indicated 0.1 cents lower at 83.26 on the dollar. The sol has remained resilient, rising 0.7% this month.

Congress initially voted on the proposal Friday, but the unicameral legislature failed to reach the necessary threshold. Lawmakers approved re-evaluating the proposal earlier Tuesday and later in the day, 93 lawmakers voted in favor of holding early elections with 30 voting against and one abstaining.

The government declared a 30-day nationwide state of emergency last week in an attempt to restore order, clear roads and reopen highways. At least 26 people have died in clashes with police.

–With assistance from Karl Lester M. Yap.

bloomberg.com 12 20 2022