RIO DE JANEIRO, BRAZIL - Peru's economy could plummet by more than 20 percent if unpaid consumer debts continue to mount, a scenario the government hopes to stave off with an emergency plan to reschedule troubled loans with state guarantees, the government said on Thursday.
Economy Minister María Antonieta Alva said banks were increasingly under pressure as Peruvians have struggled to pay mortgage, consumer and small business debts, leaving the country on the brink of crisis.
”If there were a disruption in the financial system, we believe that the projections of the decline could be much higher than the . . .