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| Caribbean-Latin America |
| Peru's business sector relieved by Garcia vote victory |
| 2006-06-06 |
| Members of Peru's business sector breathed a sigh of relief Monday after Alan Garcia won the presidential elections, but they warned that he will have his work cut out in governing a deeply divided nation. "It is important that a democratic option won that does not aspire to destroy the fundamental legal framework, which is the constitution," said Compania de Minas Buenaventura SAA's (BVN) chief financial officer Carlos Galvez in a telephone interview with Dow Jones Newswires. Garcia, a 57-year-old lawyer, ran the nation from 1985 to 1990 as leader of the social democratic party, Apra. Although that administration ended with spiraling inflation and rampant terrorism, a majority of voters decided Sunday that Garcia was a better choice than nationalist candidate Ollanta Humala. The 43-year-old Humala had spooked the business sector when he proposed a new constitution for Peru. Humala also planned to take control of energy resources, including the giant Camisea natural gas project, which came on stream in mid-2004. The ex-military officer also promised to impose a windfall tax on mining projects, force all companies to pay royalties, and re-negotiate contracts that have guaranteed "tax stability" for many mining companies operating in Peru. In recent years Peru has become one of the world's largest producers of gold, copper, zinc and silver, and a boom in global commodities' prices has meant increased investment and higher revenues for companies operating in the sector. However, many of Peru's poorest people claim they have reaped no personal benefits and Humala sought to cash in on that social discontent. Garcia took a much more moderate approach during the campaign, saying the government could re-negotiate energy contracts but any changes would be negotiated and not imposed. |
| Posted by:Fred |
| #1 Do they want cash or running water and sewers that work??? |
| Posted by: anonymous2u 2006-06-06 01:18 |