Housing and Construction Minister: Peru credit market and construction sector stay strong in face of global financial crisis

Peru’s construction sector is staying the course and mortgage rates are being monitored closely in the face of the global financial crisis, said Housing and Construction and Minister Enrique Cornejo Wednesday.

“Peru is prepared for this (international crisis) and the construction sector, in particular, is very strong,” Cornejo told TV news show Confirmado.

“Mortgage rates are being very well monitored,” Cornejo added. “We are in the first phase, we don’t even have a secondary credit market in Peru and therefore this is a process in which stand solidly.”

Mortgages are granted in soles, said Cornejo, considering that the Superintendent’s Office requires a complete global risk analysis: every person, every business and every bank is checked and classified according its behavior in the financial system and according to guidelines emitted by the Basel II Agreement on financial services.

The Basel II is an agreement signed by various countries, including Peru, stating that they agree with the twenty-five core principles of the Basel Committee on Banking Supervision as of 1997, which is aimed at strengthening financial institutions.

“The construction sector is growing by 16 percent annually,” said Cornejo in comments to state news agency Andina, “and Peru has a 9 percent annual growth rate. This means that the construction sector is a very dynamic sector and in the vanguard of growth.”

“Peru is steady and serene in the face of this crisis,” added Cornejo. “Our efforts are being concentrated on the State’s capacity to improve the quality of its spending, to pace the rhythm slighty.”

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