Lima, (NNN-ANDINA) : Viable Public Investment Projects (PIPs) reached 5,920, totaling S/27.185 billion (around US$8.286 billion) as at May 11, Peru’s Economy and Finance Ministry said.

It should be noted these projects have been declared viable by the three levels of government: national, regional and local.

During the analyzed period, local governments determined the viability of 5,237 PIPs worth S/17.624 billion (about US$5.372 billion).

They were followed by regional governments with 449 PIPs valued at S/4.421 billion (about US$1.347 billion), as well as the national government with 234 PIPs worth S/5.140 billion (about US$1.567 billion).

Meanwhile, Peru’s net international reserves, which help the country preserve economic and financial stability, amounted to US$63.135 billion in the week ended May 7, Central Reserve Bank of Peru (BCR) reported.

According to BCR’s Weekly Economic Report, reserves were mainly made up of liquidity international assets.

This level of reserves is equivalent to 32% of the country’s gross domestic product (GDP) and 21 months of imports.

International reserves guarantee the foreign currency availability in unusual situations that might occur due to external shocks resulting in eventual and possible withdrawals of foreign currency deposits and a subsequent capital flight from the financial system.

Also, an adequate availability of foreign exchange reserves helps reduce the country-risk with the subsequent improvement of the country credit ratings and better conditions to expand foreign investment in the country.

International reserves are particularly important in a context of globalization of international markets, reduction of barriers to capital flows and volatility of financial, foreign exchange and metal markets.