Peru Seeks Broad Delegated Powers for Economic Reforms

Peru’s executive branch has submitted a bill to Congress requesting delegated legislative powers for 120 days to pass 66 specific reforms across eight sectors. If approved, the government could bypass ordinary legislative procedure to enact significant changes impacting financial services, mining, energy, infrastructure, compliance, and labor law.

For investors and multinational companies, the proposed reforms present both opportunities and risks. Key measures include removing statutory caps on interest rates, modifying rules for mining concessions, streamlining environmental permits for major projects, and facilitating public-private partnerships. The proposal also has compliance implications, seeking authority to classify certain criminal organizations as terrorist entities—affecting AML and sanctions screening—and to ban the import of goods made with forced labor, which would create new supply-chain diligence obligations.

While several congressional committees have issued non-binding opinions against the full request, suggesting a more limited delegation may result, the bill is now proceeding to key committee votes. Companies with interests in Peru should monitor the legislation’s progress to anticipate potentially rapid and significant shifts in the country's regulatory landscape.