Amid increasing demand and appreciation for the Peruvian sol, finance minister Alex Contreras has planned a local currency bond issuance by September. This move symbolizes investor confidence in Peru’s economic stability, despite political unrest and a Q1 2023 economic contraction following President Castillo’s impeachment. Meanwhile, Contreras introduced a USD 1.6 bln incentive package and highlighted the role of public spending in bolstering the economy. Nevertheless, he emphasized the need for bond issuance by September due to subsequent financing challenges.