Peru’s finance minister resigns amid government chaos

Peru’s Finance Minister Pedro Francke, widely seen as one of the most moderate and experienced figures in President Pedro Castillo’s chaotic leftist government, has resigned amid a sweeping overhaul of the country’s cabinet.

Castillo has been forced to appoint a new cabinet – the third in his rocky six-month reign – due to the resignation Monday of his Prime Minister Mirtha Vásquez.

In the Peruvian political system, once a prime minister resigns, the president must appoint a successor. The replacement prime minister then appoints a new cabinet whose members must all be approved by Congress – even those who have remained in the same jobs.

In a long twitter thread who described his achievements during his six months in office, Francke wrote: “I am confident that the new leadership will continue the reforms that have just begun and that the new cabinet will work to strengthen the fight against corruption.”

There was no immediate confirmation of who would succeed the finance minister, although local media reported he would be replaced by Oscar Graham, an economist with years of experience at the finance ministry and the bank. central.

If this appointment is confirmed, it will probably go a long way to calming the markets. The chaos within the government has shaken business confidence and weakened the Peruvian currency, the sol.

Castillo has been criticized for flip-flopping on politics and making statements that he later had to recant or qualify. He has already survived one impeachment attempt and is set to face more, while his approval rating has fallen from a high of 40% in September to around 25%.

In his resignation letter on Monday, Vásquez said it was no longer possible to find consensus within the cabinet. In a clear jab at the president, she also hit out at “the executive”, saying “doubts and indecision are unacceptable”.

On Sunday, Castillo accepted the resignation of his third interior minister and sacked the police chief in a row over promotions and retirements from the service.

Earlier Tuesday, a secretary to the presidency resigned, and in a scathing resignation letter describes “the absence of an organized labor system” since the beginning of Castillo’s presidency.

The secretary said the government was plagued with “disorder” and “a lack of rigor in following the rules”.

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