Peru Economy Minister critiques interest rate caps and stalled public works

Peru's Minister of Economy and Finance, Élmer Cuba, has raised concerns regarding interest rate caps, arguing that current usury laws may inadvertently promote informal lending. During a presentation to the Chamber of Deputies, Cuba stated that these limits primarily affect non-banking institutions—such as rural and municipal savings and loan cooperatives—that serve micro-enterprises and high-risk consumers. He warned that such regulations push borrowers toward unregulated “gota a gota” informal loans rather than combating usury.

Additionally, the Ministry of Economy and Finance is conducting a census of stalled or unfinished public works projects across the country. Minister Cuba announced that the government aims to prioritize projects that are closest to completion, such as roads, schools, and police stations, to ensure that public investment translates into actual services for citizens. The ministry will categorize these projects to determine which can be reactivated most efficiently, favoring those with high levels of existing progress.