Peru, one of the International Monetary Fund, IMF, clients has announced it has no intention of renewing the stand by agreement that extends until February 2009.
"Our intention is to finalize the IMF program once it expires in 2009", said Javier Silva-Ruete, Peruvian delegate before the IMF. The stand by 270 million US dollars agreement with the IMF was signed in January 2006 and expires February 28, 2009. "These credits are a crutch in crisis situations", said Silva-Ruete. "This is evidence of how far the Peruvian economy has advanced and its excellent health condition". "We don't need loans with conditions or strings tied, or with any kind of restrictions", he emphasized. On Wednesday the IMF said that Peru's economic performance is surpassing expectations and growth in 2008 should be between 6 and 7%, "even as the global economy slows". The IMF board also said Peru passed its second review under the 270 million US dollars stand by loan agreement signed with the government of President Alan Garcia. "Things are going very well (in Peru)," said Martin Cerisola, chief of the mission from the International Monetary Fund that visited Peru last month. "Peru could grow 6 or 7% next year, in a context of lower commodities prices and a slower international economy," he said on a conference call. However Peru's government expects to grow more than 7% next year after growth this year of around 8%. Low inflation, a solid fiscal position and a diversifying economy based on investments, consumption and exports are fueling growth in Peru, officials said.