Castilla Says Business-Friendly Measures to Boost Peru’s Growth

Peru unveiled legislation designed to ease the financial burden on companies and streamline bureaucracy to boost growth as copper exports slump.

The measures include relaxing environmental rules for 11 billion soles ($3.9 billion) of oil and gas investment and waiving more than 20 billion soles in back taxes, Finance Minister Miguel Castilla told Lima-based Radio Programas.

Falling export revenue has depressed private investment in the world’s third-largest copper producer and led the World Bank this week to cut its 2014 growth forecast for Peru’s economy to 4 percent from a January estimate of 5.5 percent. Castilla said the government’s package will add as much as three percentage points to growth within two to three years.

“The government’s effort will make a difference and allow us to return to sustained growth rates of more than 6 percent in the coming years,” Castilla said.

The bill seeks to streamline the process of obtaining licenses at all levels of government, speeding up public and private investment projects, he said.

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