Page 17 - MONTT GROUP LATIN AMERICAN MAGAZINE JANUARY, 2020(Ingles) .pdf

Peru’s New Congress
16 new legislators.
The other novelty was the Union for Peru party (Unión por el Perú), with seven percent of the votes, ultranationalist and also indigenist.
The left won many votes if the su rage of the Broad Front (Frente Amplio) with 6,1 percent and Together for Peru (Juntos Por Perú) with 5,1 percent were added, but when attending these elections separately, the rst one took 12 seats and the second ve.
It is expected that the new Parliament will be installed in March and will be in operation until July 2021, because the President, Martín Vizcarra, closed the Congress and called elections, after the political crisis that hit the country due to corruption and tension between powers that marked the last three years of Peruvian politics.
The dissolution of the Parliament in 2019 occurred on September 30, 2019 by Supreme Decree No 165-2019-PCM; for this, the Head of Government relied on the provision contained in article No 134 of the Peruvian Constitution, according to which the President may dissolve the Congress and call for new parliamentary elections in the same act.
Pending Tasks
When legislators assume the new Congress in March, the rst thing will be how to address bills pending approval since September 30, 2019 when the legislative body was closed. Traditionally the new Congress stores the projects of the previous period and starts from zero, but due to the special circumstances in which the legislative organism stopped working it is possible to expect some important initiatives to be retaken.
In the 2018-2019 legislative period in the Economy and Labour commissions, 37 bills were passed that were waiting to be debated in plenary. The most discussed topics were: tax system (10 initiatives); health system (six) and pension system (four). Other relevant matters included the law on prior mergers and acquisitions control. In May 2019, the provision was approved, but a simple error prevented it from reaching the Executive. The latter approved the rule by Emergency Decree last November, but was declared unconstitutional by the Working Group of the Permanent Commission. The main observations were that the rule should be stable or permanent and that there would be no mechanisms to guarantee the duty of con dentiality.
Precisely, due to the closure of the Congress, the Peruvian Government began to publish various Emergency Decrees, that is, extraordinary measures, which could be modi ed or repealed, with posterity by Parliament.
Emergency Decrees
Thus, recently the Government published the Emergency Decree 20-2020, which modi es the law that regulates institutional arbitration. The objective is to avoid “bad practices” that have caused serious damage to the Peruvian State, such as corruption. The new bill creates the National Registry of Arbitrators and Arbitration Centres, which contains regulations at the national level with the registration of a idavits of interests of professionals in the eld that participate in the disputes to which the State is a party. Likewise, the Executive Power issued another Emergency Decree No 021-2020 that establishes the infrastructure execution model through special public investment projects, gathering the best practices and high international standards. This is intended to boost economic activity. The norm indicates that it corresponds to the National Control System, within the framework of its competences, to carry out preventive and concurrent surveillance of the contracting carried out by public entities.
On the other hand, the Emergency Decree No 013-2020 was issued and proposes eight measures that will favour the dynamism of economic activity in the country, since it will contribute to improving access to nancing for small businesses, entrepreneurships and start-ups, granting them better conditions to obtain liquidity and facilitate the expansion of its production.
The standard considers that there are two million small and medium size companies nationwide; of that total, currently only 5,7 percent access formal nancing, so this package of measures is key for these entities to obtain credits and strengthen their operations, through mechanisms such as factoring, nancing through use of the purchase orders of state suppliers, among others.
Through this same Emergency Decree, the legal framework was established to regulate and supervise the activity of participatory nancial nancing (crowdfunding), through the companies authorized to administer the platforms through which said activity is carried out. The role of the Superintendence of the Stock Market as regulator and supervisor of this scheme was established.
This package in turn drives the development of the venture capital financing market for which the Capital
Fund for Innovative Entrepreneurships is created for USD $ 21,049,757 that will allow companies to support their
consolidation stage.
Montt Latin American Magazine p17