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Petroperu Says It Needs Urgent Cash Injection From Government

PERU
  • In a securities filing, the board of Petroperu has said that the government must decide urgently what to do with the company. The board said that the company is in an unsustainable situation and that the government must either inject cash or accept its bankruptcy.
  • The comments follow reports in June that Petroperu had asked the government to convert some of its loans into equity and push back payment deadlines to avoid running out of cash this year.
  • In terms of the macro calendar, no data are due today, with the next release of note being the August CPI inflation figures on Sept 1. Analysts currently expect the headline rate to dip to 1.98% y/y, from 2.13% in July, keeping the door open to a further potential interest rate cut at the Sept 12 BCRP monetary policy meeting.

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