Peru gets new cabinet, save for energy and mines

Peru's new interim president Francisco Sagasti appointed his cabinet late yesterday, with the notable exception of the important energy and mines post.

Sagasti, a congressman elected in January, assumed the presidency on 17 November, the third president in a week in a fast-moving crisis that started with the 9 November impeachment of former president Martin Vizcarra. His replacement, Manuel Merino, was forced to resign on 15 November following violent street protests.

Sagasti reached out to technocrats with previous government experience for his cabinet. He tapped Violeta Bermudez, a constitutional lawyer, as cabinet chief, and named Waldo Mendoza as economy and finance minister. Mendoza is a former deputy finance minister and head of the fiscal council, an autonomous government agency that provides policy recommendations.

The big surprise was the failure to swear in a minister for the powerful energy and mines ministry. The sector represents close to 60pc of Peru's export revenue and the bulk of its foreign direct investment.

Peru is South America's only LNG exporter and is the world's second-largest copper, zinc and silver producer.

According to government sources, Sagasti was set to tap Carlos Herrera, who held the portfolio in two previous governments and had joined the Merino cabinet. Other ministers objected to his participation, worried that his tie to Merino could complicate the interim administration's ability to govern the country through April 2021 elections and the July 2021 handover. Herrera stepped aside.

According to a snap poll by Ipsos released today, 94pc of Peruvians opposed Merino's appointment.

The new government is under pressure to recuperate the economy. Peru's pandemic-hit economy contracted by 14.5pc year on year in the first three quarters of 2020.

By Lucien Chauvin