- President Martín Vizcarra survived an impeachment trial a month and a half earlier;
- The Peruvian Congress approved a law to enable citizens to withdraw more of their investments in private pension funds to alleviate the economic crisis.
The Peruvian Congress approved on Monday to start a new impeachment case against President Martín Vizcarra over corruption allegations, a month and a half after he survived a similar process by having the majority of votes. Now, the President will have to defend himself in plenary on November 9.
Also on Monday, the Peruvian Congress approved a law to enable citizens of the Andean country to withdraw more of their investments in private pension funds to alleviate the economic crisis caused by the pandemic.
The law was approved by almost every congressman despite opposition from the government of President Martín Vizcarra. It authorizes the withdrawal of up to PEN 17,200 ($4,765) from the private pension system by members who have not contributed for more than 12 consecutive months.
In April, the Peruvian Congress enacted a similar law allowing people to withdraw up to 25% of their holdings in private pension funds. This law allowed a maximum withdrawal of PEN 12,900 ($ 3,573).
The Ministry of Economy and the Central Bank warned that a second round of withdrawals would affect the solvency of the financial system.
Four private pension fund companies operate in Peru. In March, just before the first law was approved, they managed the equivalent of $46 billion.
The funds were forced to liquidate assets in the local and international markets in July to accommodate withdrawals after the first law was approved.
(Translated by LABS)