Loreto strike in force

The 72 hour regional strike in Peru’s jungle Loreto region has started, with road blocks on the Tarapoto-Yurimaguas highway and closures on all levels.

The strike, called by the local government in response to new taxation laws concerning the area, is estimated as having a 90% impact on the region’s commercial and official activities including the departmental capital of Iquitos.

Hospitals, markets and some public transport operators remain functional.

Despite widespread protests, the situation has been described as “peaceful”, with no injuries or damage to property reported.

Juan Diego Flores receives Peru’s highest honor

 

Today Peru’s President Alan Garcia awarded the order of the Sun of Peru at the level of the Grand Cross, the nation’s highest honor, to Peruvian tenor Juan Diego Flores.

The ceremony took place in the Gilded Room of the Palace of Government, where the president recognized Flores for his outstanding contributions to Peru’s worldwide image. The tenor is thought of as among the world’s greatest classical singers, vaunted by many as the successor to Luciano Pavarotti.

The order of the Grand Cross of the Sun of Peru is the nation’s highest honor.

Peru’s economic risk hits new low

Peru’s economic risk rating dropped on Friday from 1.00% to 0.97%, as calculated on the JPMorgan EMBI+ rating. This is the first time in the nation’s history that its rating has dropped below 1%.

The Emerging Markets Bond Index Plus is a rating of the difference in value between a Peruvian government issued bond and an equivalent bond issued by the US treasury, so is an accepted measure of the probability that a country fail to meet its obligations. A low rating means that the country is seen as “safe” by international investors.

This drop in risk is likely to encourage a large number of international financiers who only consider investing in countries with a rating of under 1%.

Peru’s international credit score is given as BB+ by two of the three main agencies, Fitch Ratings, Standard & Poor’s and Moody’s – just one step away from the top level ratings in the A category.

Many analysts consider it likely that Peru will reach the “investment level” soon, which is expected to result in a flood of foreign investment. A risk rating of under 1% and a credit score of A are the key components necessary for this to happen.

Peru-Brazil joint expedition: Amazon is world’s longest river

 A joint Peruvian-Brazilian expedition has declared that the Amazon is the world’s longest river, stretching 6,672km (4,145.8 miles) from the Mismi mountain in Cuzco, Peru, to its mouth into the Atlantic in Brazil – compared to the 6,671km (4145.2 mile) length of the Nile.

While no hydrologists doubt that the Amazon is the world’s largest river in terms of flow, drainage basin, ecosystem and global impact, there is still debate over which river is the longest.

Egyptian officials have yet to recognize the Peruvian-Brazilian findings.

Apolo, Bolivia, calls on Peru to invade

Locals of an ecological reserve in Bolivia have held protests demanding that they be annexed by Peru. Waving Peruvian flags, as many as 4,000 people filled the local square and called on the mayor to extend an invitation to Peru to occupy the region.

The small town of Apolo, located just 6 hours’ walk from the Peruvian border, marks the entrance to the Madidi National Park, an Amazon wildlife refuge that includes around 1.8 million hectares (4.5 million acres) of pristine rainforest.

Officials opposing the protest claimed that the people were angered that the protected nature of the area prevents them from being legally allowed to log the forest or take advantage of oil reserves thought to exist in the region.

Speaking from La Paz 200km away, Bolivian President Evo Morales referred to the protesters as “drug traffickers and wood smugglers”.

Newborn found abandoned in Puno

With the umbilical cord still attached, a new born baby weighing 3.3kg (7lbs 4oz) was left abandoned near an orphanage in the mountain city of Puno, on the shores of Lake Titicaca. The infant was wrapped in a sweatshirt, and would not have survived the freezing temperatures that Puno experiences each night.

Police operatives found the child and, giving her the name Hermelinda, took her to the local hospital’s neonatal ward. Her condition is described as stable.

Local people have come forward with an array of gifts for Hermelinda, including baby milk, clothes, and diapers.

Peru Reserve Bank chief: stock exchange volatility down to inexperienced investors

Julio Velarde, the President of Peru’s Central Reserve Bank (BCRP) yesterday blamed recent instabilities of the Lima Stock Exchange (BVL) on the influx of a large number of inexperienced investors, drawn in by the indices’ high yield this year, who then panicked when prices started to drop. He estimated their total investment at around US$500 million.

“People without much experience on the exchange were jumping in, buying up the stocks that had already experienced a lot of growth this year. They bought when the stocks were highly valued, and when the indices started to drop they started to panic and moved to sell out,” said the finance director.

He attributed part of the recent sudden drop of the exchanges indices to this mass selling by small investors, who had been attracted by the exchange’s growth; but described the recent drop as a readjustment that is already over, and not indicative of a slowing in overall growth. He pointed out that the BVL has grown by 168% in the past twelve months, with 42% increase so far in 2007 alone.

June Festival Calendar

FEATURE

Qoyllur Rit’I – June 1st
Quispicanchi, Cuzco

The biggest indigenous pilgrimage in the Americas, Qoyllur Rit’I sees upwards of 10,000 people walking to the foot of the Ausangate Mountain (6,362m, or 20,870 feet) to pay homage to a painting of the infant Christ. The ceremony commemorates an Inca festival.

Chachapoyas Tourist Week – June 1^st to 7^th
Chachapoyas

An array of cultural activities are programmed for the week, featuring festivals, traditional foods, and the local Raymillacta folk dance.

Corpus Christi – June 7^th
Cuzco

Effigies of saints are paraded through the city’s streets to the cathedral, where they are brought to the consecrated host in an 18kg gold “macizo”. The traditional food for the festival is chiriuchu.

Sondor Raymi – June 16^th
Andahuaylas, Apurimac, near Cuzco

A pre-Hispanic ritual that commemorates the history of the local Chanka people. It takes place at the Pacucha lake, and continues at the site of Sondor, where the Quechua ceremony reaches its peak.

Catacaos Jubilar Week – from June 21st
Catacaos, near the city of Piura in the north of Peru

The annual festival of Catacaos, the Piura town famous for its traditional foodstuffs and handicrafts. Catacaos is the center of modern production for traditional colonial silver filigree work.

Saint John the Baptist – June 24^th
All over the eastern jungles of Peru; Canchaque, Piura; and other locations

A carnival atmosphere accompanies this festival all over the country, particularly in the jungle provinces and cities such as Puerto Maldonado, Iquitos and Pucallpa. The small town of Canchaque, 5 hours from Piura, also holds a charming local festival that is well worth the trip.

Inti Raymi – June 24^th
Cuzco

What was the key festival of the Incas is now transfigured into a shameless tourist spectacle featuring fake Incas, fake gold, and fake ceremonies. Expect Cuzco to be even more full of tourists and pickpockets than is usually the case.

Chaccu de Vicuñas – June 24th
Pampa Galeras, Ayacucho

The Chaccu is an ancient ceremony to give thanks to Pachamama, the female Earth spirit for protecting the Vicuña, Peru’s graceful wild camelid and source of the finest fiber in the world. The festival, similar to that described in the early days of the conquest, consists of forming a human circle around the vicuña, trapping them inside as the people approach each other.

Day of Saint Peter and Saint Paul – June 29^th
Peru’s coast

Centered in the city of Chimbote, the festival features a religious procession in fishing boats decorated with flowers. Smaller ceremonies take place in other coastal towns, commemorating the disciples who were fishermen.

Lima Stock Exchange breaking records for growth

By midday today the Lima Stock Exchange (BVL) had already broken records for growth on a single day, with the General Index (IGRA or IGBVL) increasing by over 7.8% — more than enough to offset yesterday’s catastrophic fall. The Selective Index (ISEL or ISBVL) rose by 8.25% in the same time.

On a day that seems to be bringing further rises in international metals prices, the mineral sector is recovering very fast from the heavy losses experienced over the past few days, with investors hurrying to buy into what seems to be the start of a new upsurge.

UPDATE: By early afternoon, the General Index was showing growth of 8.35% and the Selective Index 8.50% today. Some analysts were talking of a 10% increase by close of trading.

See also:
President Garcia: economy as solid as a rock
Lima stock exchange back in the black, with furious trading and staggering increases
Record losses on Lima Stock Exchange

President Garcia: economy as solid as a rock

President Alan Garcia stated today that he expect the Peruvian economy to grow by 7-8% this year, due to an increase in local consumption and foreign investment, rather than due to the increases in world metal prices that have bolstered the economy in the first quarter but which are due largely to external factors.

Calling the economy “real, material and productive”, he said that Peru’s projected economic growth for 2007 is the highest in Latin America.

He added that the government’s reduction in customs tariffs at the beginning of the year has brought a heavy influx of machinery and capital goods, with first quarter import figures up 40% on 2006.

He referred to this growth as a sign of active investment and increased production capacity, which he expects to be reflected in generation of employment.

The economic growth has occurred despite low inflation rates of around 1%, so the President described the economy as “not heating up”.

He also cautioned against taking the last weeks’ drops in the Lima Stock Exchange (BVL) as indicative of a long-term downturn – a prediction that seems to have come true already with today’s very solid gains on the trading floor.