Peru has experienced strong economic performance recently with GDP growth outperforming the region. The financial system is dominated by a few large banks, though liquidity and loan levels vary across bank size. Public investment and capital expenditures have increased significantly, helping counter the effects of the global crisis. While macroeconomic stability has been maintained, challenges remain around infrastructure development and education.

1. Perú: Economic Performance and Perspectives Ministerio de Economía y Finanzas October, 2009

2. Devaluation since 01/09/08 Reserves / GDP 2008 Because of our macroeconomic strength Source: BCRP

3. Source: LatinFocus Regional Growth (Annual percentage change, in real terms) Regional Inflation ( Annual percentage change of CPI) Consensus: Peru outperforms in the real sector

4. Financial System Structure Big Size Banks Medium Size Banks Small Size Banks Rural S&Ls Financial Companies Assets 39,218 3,989 2,381 219 433 384 291 Share of total 84% 9% 5% 0% 1% 1% 1% Liquid Assets 37% 24% 22% 16% 21% 10% 7% Net Loans 56% 67% 68% 77% 71% 82% 83% Deposits - With the public 66% 57% 55% 63% 62% 0% 0% - Financial System 6% 7% 5% 3% 2% 0% 10% Due to Banks 12% 17% 14% 12% 17% 72% 52% Bonds 4% 3% 3% 0% 0% 0% 15% Saving and Credit Cooperative Local Government S&Ls Source: SBS, September 2008

5. Low interest rates favor investment Source: Bloomberg Domestic Currency Sovereign Yield Curve (Percentage)

8. Forecast & Long Term

9. Sustainable external accounts balance

10. Public investment important role Source: MEF Overall Demand and Supply (Annual percentage change, in real terms)

11. Operations of the Non-Financial Public Sector (As a percentage of GDP) Anti-Crisis Plan (US$ 2,500MM) Financing Plan Fiscal stimulus: public investment