Peru Seeks Fast-Track Authority for Major Economic Reforms

Peru's executive branch has submitted a bill seeking a 120-day grant of delegated power from Congress to enact sweeping regulatory reforms by decree. This would allow the government to bypass the ordinary legislative process to implement changes across eight policy areas. For sophisticated counsel and their clients, the proposal creates both uncertainty and potential opportunity. Key measures under consideration include the elimination of statutory interest rate caps, the modification of rules for mining concessions, and the streamlining of environmental and infrastructure project permitting. The bill also contemplates new compliance obligations, including a prohibition on importing goods made with forced labor and a framework for designating certain criminal organizations as terrorist entities, which would affect AML and screening protocols. The bill faces an uncertain path in Congress, with several committees having issued unfavorable opinions, and the final scope of any delegated authority may be narrower than requested. Companies with Peruvian interests should monitor the bill's progress closely.