OAS Head: Strong Growth Without Better Equity “Could Be Dangerous”

Strong economic growth in Latin America “could be dangerous” if it is not accompanied by improved distribution of income, the head of the Organization of the American States said.

Countries in Latin America have been growing at solid rates, taking advantage of a demand for raw materials from emerging market powerhouses like China. However, the region is still considered one of the most unequal in a number of economic and social areas.

OAS Secretary General Jose Miguel Insulza said that it is key for Latin American Read more…

HSBC Sells Units In Peru, Colombia, Paraguay and UruguayFor $400 Million

HSBC Group said Friday that it has reached an agreement to sell its units in Peru, Colombia, Paraguay and Uruguay to Colombia’s GNB Sudameris for $400 million, Peruvian state news agency Andina reported.

The approval of the deal is subject to regulatory approvals in each of the jurisdictions, as well as other conditions.

Andina said that the sale of HSBC’s units in Colombia and Peru are expected to close in the last quarter of 2012, while the sale of its units in Paraguay and Uruguay Read more…

Humala Maintains Solid Support Despite Criticism Over VRAE Strategy

A new national poll shows that President Ollanta Humala has continued to maintain solid support in May, despite seeing his approval rating drop a tad from the prior month.

The poll by Datum, which was published in daily Gestion, said that Humala has a 55 percent approval rating in May, compared to 57 percent in April.

The poll, which was taken from May 4 to May 7, shows that the president’s approval rating has not been significantly impacted by a recent uproar over his government’s handling of a hostage crisis of Read more…

Garcia Backs Humala’s Policy Against Shining Path

Two-time former President Alan Garcia has thrown his support behind Peru’s current President, Ollanta Humala, as the government is battling a Shining Path remnant group in a rugged, coca-growing region that has led to the recent deaths of a number of police and army officers.

Garcia, who was president in the 1980s and again from 2006 to 2011, called on Peruvians to unite around Humala’s anti-terrorist policies, daily El Comercio reported. He said the recent clashes between security personnel and the rebels, as well as the subsequent resignation of Peru’s Defense and Interior ministers, won’t Read more…

Peru’s Ministers Resign Over Fight With Shining Path Rebels

Peru’s Defense and Interior ministers, a mere six months since being appointed to their posts, resigned on Thursday amid a political uproar over an operation to rescue hostages and capture Shining Path rebels who had kidnapped the 36 natural gas workers last month.

The ministers faced a censure in Congress to be voted on Saturday. Opposition lawmakers had said they had enough votes to pass the non-confidence vote, which would have been a major blow to President Ollanta Humala’s administration.

The prime minister’s office confirmed that Defense Minister Alberto Otarola and Read more…

Ninth Soldier Killed In New Shining Path VRAE Attack

A non-commissioned army officer was killed in a new attack by remnants of the Shining Path insurgency in the Apurimac and Ene river valley, known as the VRAE, daily El Comercio reported.

The officer, 38-year-old Valentin Huanca, was killed when a Shining Path sharpshooter attacked the Mazángaro counter-terrorism military base in Junin region’s San Martin de Pangoa province.  He is the ninth security forces member to be killed in the past month in the VRAE.  

The other eight security forces were killed as part of an operation to rescue 36 natural gas workers who were kidnapped in April, further south in the north Cusco region.  The unsuccessful operation —the hostages were allegedly released by the Read more…

CAF Applauds Peru’s Path Towards Sustainable Development

The Andean Development Corporation, CAF, said Tuesday that Peru is on the right path to sustainable development in the long term, according to the country’s state news agency Andina.

Jose Carrera, the vice president of social development at CAF, said that Peru has experienced important growth with equity, which has improved the lives of the country’s poorest.

“The poorest are the ones that need to improve their quality of life, their conditions and health, fundamental elements for an economy to have sustainable Read more…

Opposition Lawmakers To Support No Confidence Vote For Ministers

Opposition lawmakers say they will support a vote of no confidence for Interior Minister Daniel Lozada and Defense Minister Alberto Otarola, due to their handling of the incidents involving Shining Path remnants in the Apurimac and Ene River Valley, or VRAE, daily El Comercio reported.

Spokespersons for the Alianza por el Gran Cambio, Solidaridad Nacional and Concertacion Parlamentaria said Monday that they would support the vote.

“For Alianza por el Gran Cambio we absolutely support the decision of the government to systematically confront drug trafficking and terrorism, but there is  no way Read more…

Humala Travels To Japan, South Korea To Boost Ties

President Ollanta Humala left for Asia over the weekend as part of a tour aimed at boosting political and economic ties.

Humala left Sunday for Japan, accompanied by Foreign Relations Minister Rafael Roncagliolo and Finance Minister Luis Miguel Castilla.

Humala and the other high-level government officials are scheduled to meet with the Peruvian Japanese Business Council, Cepeja, on Monday night in Tokyo. On Tuesday, they will hold talks with Japan’s parliament, including a meeting with the President Read more…

Prime Minister Rejects Calls To Remove Ministers Over VRAE Strategy

Prime Minister Oscar Valdes rejected Friday that Peru’s Interior and Defense ministers could be removed from their posts for their handling of a conflict with Shining Path remnants in the coca-growing Apurimac and Ene river valleys, or VRAE.

Valdes said that removing Defense Minister Alberto Otarola or Interior Minister Daniel Lozada would not be favorable for the government, daily El Comercio reported.

Valdes’ comments come as a number of lawmakers are calling for the ministers to resign following recent events in the VRAE that show the state has practically no Read more…

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