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Thursday, July 11

Yahoo / Reuters Peru Cabinet Crumbles, Changes Seen on Friday: "The exit of Kuczynski, a relaxed, tennis- and flute-playing former fund manager, is expected to hand the herculean task of balancing Peru's budget back to his predecessor, Javier Silva Ruete, who had the job for eight months in 2000-2001." This is a political watershed for the Toledo government. PPK gave creditibility and clear policy direction to Toledo. Now that he has broken with PPK, the issue will be whether a competent technical team can be pulled together. If Silva Ruete is the leading candidate for finance minister, there might be a chance.

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