Musical chairs

Vizcarra ousted, Merino resigned, Silva-Santisteban rejected, now Sagasti.

At the second attempt, President Martín Vizcarra was ousted by an impeachment vote over allegations that he accepted bribes when governor of Moquegua. The Speaker of Congress, Manuel Merino, was sworn in as interim president last week.

Vizcarra supporters immediately labelled his ousting as a coup, the OAS issued a  communique stating it will not recognise Merino as President until the Constitutional Court has ruled and millions of protestors flooded the streets across the country.

This week, Merino resigned after the military were deployed and the protests turned violent, resulting in two deaths and hundreds of injuries. Yesterday, a new president, Francisco Rafael Sagasti, was sworn in but only after Congress rejected Rocío Silva-Santisteban, a controversial former human rights activist.

Vizcarra, an independent centrist, came to power with an agenda to combat corruption and as he followed through on his mandate, he frequently clashed with Congress: last year he dissolved Congress for obstructing his anti-corruption drive and 68 out of the 130 new lawmakers are under investigation!

A young Peruvian politician comments, “We are witnessing the final blow from the old political class that is desperately struggling to survive investigations and their own political mistakes.” 

“We are witnessing the final blow from the old political class that is struggling to survive investigations and their own political mistakes.”

A young Peruvian politician

Our sources have many concerns. Firstly, Peru is already in the midst of a health and economic crisis, this political crisis could not come at a worse time. Secondly, who will supervise the Congress if now it is also acting as the government? Finally, there is the small matter of the 2021 budget that must be approved before 30 November and then elections next year.

Looking forwards a local asset manager is concerned, “We were rapidly coming out of the crisis but that will stop now. Private investment will retract in fear, at least until elections take place next year.”

“Private investment will retract in fear, at least until elections take place next year.” 

Peruvian asset manager

A political and economic analyst already sees the effects, “The stock market has fallen sharply, the dollar is at 3.65, government paper is no longer attractive so Peru’s credit rating will lower and it will be more difficult to borrow abroad.”

An executive at a large Peruvian financial institution despairs, “We are wasting opportunity, the price of copper is very high and we will miss the benefit as this Congress is anti-mining.”

Political crises are sweeping the “Cono Andino”, first Chile, then Bolivia and now Peru, who’s next?

Important Notice
While the information in this article has been prepared in good faith, no representation, warranty, assurance or undertaking (express or implied) is or will be made, and no responsibility or liability is or will be accepted by Deheza Limited or by its officers, employees or agents in relation to the adequacy, accuracy, completeness or reasonableness of this article, or of any other information (whether written or oral), notice or document supplied or otherwise made available in connection with this article. All and any such responsibility and liability is expressly disclaimed.
This article has been delivered to interested parties for information only. Deheza Limited gives no undertaking to provide the recipient with access to any additional information or to update this article or any additional information, or to correct any inaccuracies in it which may become apparent.

Most recent in Politics

Ecuador shuts its door

President Noboa’s bold security measures and economic strife.

Colombia’s Political Carousel

Gustavo Petro's quest for stability.

Crude awakening 

Venezuela's ongoing political challenges amid eased oil and gas sanctions. 

Costa Rica’s escalating homicides

The urgent call for unified action against drug trafficking.

Unravelling the political tapestry

Mexico's presidential race.

Ecuador’s political crossroad

Shaking up Ecuador's 2023 presidential race.

One for all, all for one?

CARICOM’s step towards free movement in the Caribbean.

Panama’s political puzzle

The enigmatic rise of former Panamanian president, Ricardo Martinelli.

Lasso impeachment vote

Ecuador's Congress gets green light to vote on Lasso's impeachment, but will it pass?

Unravelled

Grupo Cartes restructures its business interests after Paraguay’s former president is sanctioned.