stated on Monday that Peru’s macroeconomic stability is underpinned by fiscal and monetary policies.

“Macroeconomic stability in all countries around the world has two pillars,” the government official told Exitosa radio.

“One pillar is the monetary side, which involves inflation. Therefore, countries with sound central banks have inflation under control, and that is positive because it helps prevent real wages from falling,” the Cabinet member explained.

“The other very important pillar is fiscal policy, that is, you should not spend more than you collect because when a country spends more than it collects, it goes into debt and reaches the point where it can no longer repay its debt and has to adjust the economy,” he added.

“What does it mean to adjust the economy? Well, it means mass layoffs and zero public investment, something we experienced in Peru during the 1970s and 1980s, with severe fiscal adjustments,” Cuba said.

“We are also seeing it now in Bolivia and Argentina, and recently in Venezuela. In other words, countries that become fiscally unbalanced ultimately harm their people,” he added.

Minister Cuba highlighted that Peru has had a new economic model for 30 years that generates fiscal balance, which helps provide better interest rates for obtaining a mortgage loan.

“During the 1970s and 1980s, it was impossible to obtain a mortgage loan. Now it is possible to obtain one at reasonable interest rates, and people can pay for their homes over 30 years because mortgage interest rates are relatively low due to our low country risk,” he indicated.