Foreign Banking in Peru
Maidenberg, H.J.
LIMA, Peru. Dec. 1-The ul-i Oil Company]," one foreign . ,~ tranationalist forces unleashed banker said ysterday. "And' 41 H by the military coup d'6tat here! they are beholden to local! on Oct. 3,...
...The Israel Discount Bank has an interest in the seventh larg- est Peruvian bank, Banco del Progresso...
...of the New Jersey Standard ladnde and I.P.C., ending a z4 long simmering dispute, has...
...3, are now eyeing the banks who wuld l ike t o s ee o foreign banking community inus out of the picture," he +A $ Peru...
...In any event, foreign busi-I nessmen believe that the re- formist regime can count on continued support of rightist and leftist elements by attack- ing them with impunity...
...the law and I.P.C...
...out of the country...
...As the junta views the situ-i ation of foreign concerns, the, steady take-over of domestic commercial banks by foreigners has reduced the amount of credit available to Peruvian businessmen because the over- seas bankers are said to favor foreign companies operating here...
...has ample +i However, foreign bankers are recourse in our courts for air* -d not minimizing the sharpe at- ing of their dispute with the E A, tacks against them by news- Government...
...The last two concerns are deeply involved In Peruvian business affairs...
...Foreign bankers counter that most Peruvian businessmen transfer their funds out of the country and depend on foreign and domestic banks to finance [their operations...
...Nor do the for- taxes for over 40 years, fraud e :ign bankers dismiss the radio, in declaring production figures E and television attacks by left-' and similar crimes...
...officials are reportedly h "The military has pacified the...
...banks in size but with tradi- tional ties to overseas interests in Peru are the First National City Bank, New York...
...The largest bank in Peru is Banco Credito, in which Italian banking and industrial interests have a major stake...
...Although the military is-filling the jails here with tax dodgers, few of the traditionally small elite that rules Peru and evades taxes have been imprisoned or charged with failure to pay taxes since the coup...
...Chase Manhattan Bank has a large investment in Banco Con- tinental, the fourth largest bank here, and is also an important lender to the Peruvian Govern- ment...
...The third largest, Banco Internacional, is controlled by Chemical Bank New York Trust Company, the huge commodities trading house of Bunge...
...Military men here also said yesterday that the disintegra...
...The conclusion of an agree- [owned by a Canadian subsidi- ment between President Be- .r...
...ened the _ downfall of their elected Government...
...The foreign bankers note that their financing of overseas concerns thus produces most of the country's needed revenues...
...H- o d and institutionalizing corrup- foreign and domestic concerns ", ns:k tion, inefficiency, red tape and in Peru have equal rights under o 5 W stupidity...
...Reprinted from The Bow York 'Times, December 2, 1968...
...added...
...The charges and explanation for the military coup were con- tained in a "white book" is- sued yesterday by the national- ist junta...
...1Q i left by taking over I.P.C...
...The less important foreign...
...o r. paign seeking similar action Yesterday, the junta told 0s against foreign banks...
...o ident Fernando Belainde Ter- Even the pro-United States H 0 ry for "selling out Peru's newspaper, La Prensa, said edi- + patrimony to foreign rascals torially this morning that "all...
...g o Encouraged by the military The foreign business commu- o ~ iunta's take-over of the na- nity, which includes important ons largest-mand foreign iing companies, is so dis- og owned-International Petrole- mayed at the apparent inabil- o rum Company, Ltd., on Oct...
...United States Ambassador John - + Thus far, the regime of Gen...
...was omitted any mention of foreign "strange," because the concern w en banks in his daily attacks on is registered here as a Canadi- H the ousted Government of Pres- an corporation...
...The Banco de Lima is affili- ated with Credit Lyonaise of France and French interests in Peru, and is the eighth biggest...
...the Royal Bank of Canada, the Bank of' London and South America, the Bank of Tokyo and the Bank of America, San Francisco...
...tion of Peru's economy and| "the refusal of the corrupt po-l litical groups in Congress to remedy the situation" prompt- ed their action...
...The banks are particularly vulnerable because of Peru's favorable external balance of payments ($277-million in the first nine months of this year) and the fact that they are heav- ily committed here...
...Most top 0 ists...
...Borne & Co., and W. R. Grace & Co...
...I.P.C...
...CD papers controlled by the hand- Presently, the junta has a r[ s i > tacks against t them by news- Goverument...
...Moreover, they note that the four largest concerns here, W. R. Grace and Co., South Peru Copper Company, Cerro Corporation and I.P.C., are also the biggest taxpayers in Peru...
...ful of wealthy Peruvian backers number of warrants out against, 0 4 trol most of the important do- concern, charging evasion of > - o mestic banks...
...Wesley Jones that his note on M . Juan Velasco Alvarado has the take-over of I.P.C...
...9, ity of the United States to 0 ~ both the extreme rightist and guarantee them any protection a- . leftist forces have begun a cam- from expropriation...
...ags - us out of the picture," he...
Vol. 2 • February 1969 • No. 10
