Economics

Peru Tackles Virus With Region’s Biggest Stimulus, Eyes IMF Help

  • Government unveils stimulus package equal to 12% of GDP
  • Country in talks with IMF for a $18-billion contingency line
Peruvian Finance Minister Maria Antonieta Alva speaks during an interview in Lima on Jan. 27.Miguel Yovera / Bloomberg
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Peru is moving to fend off economic catastrophe with a record fiscal stimulus and plans for a contingency line of up to $18 billion from the International Monetary Fund to contain the fallout from the coronavirus pandemic.

The government is putting together a package of economic measures totaling 90 billion soles ($26 billion), including health-care spending, tax breaks and loan guarantees to revive an economy that’s ground to a virtual halt after the government implemented some of Latin America’s toughest lockdown rules.