Peru 2015 | FINANCE | COLUMN

TBY talks to Lilian Rocca Carbajal, Superintendent of Mercado de Valores (SMV) on capital market.

Lilian Rocca Carbajal

How have recent macroeconomic trends affected Peruvian capital markets? What will be the regulatory response?

Throughout the past decade, the GDP of Peru has experienced 6.7% annual growth. Moreover, investment has risen from 18-28% of Peru's GDP, amounting to more than $57 billion, and the external public debt represents just 8.6% of Peru's GDP. Peru was recognized in 2014 as one of 20 countries in the world with the best internal macroeconomic condition according to the World Ranking of Macroeconomic Environment Global Competitiveness Report. The macroeconomic prudence of the country and the existence of a favorable legal, economic, and regulatory framework for foreign and local investors have led to successive improvements in the rating of sovereign foreign currency debt by major rating agencies.

What changes do you envision in the regulatory regime of Peru over the coming years?

For 2015, we plan to normalize many regulations and also bring in certain new ones. In 2011, we saw a reform that encouraged IPOs, and that was successful enough to prompt surrounding countries such as Ecuador, to work on implementing some of the same reforms. In 2015 we have planned structural reforms that will facilitate the process of holding IPOs and will also help to create new mutual funds. These structural reforms will make those funds more agile, cheaper, and allow better access for citizens.