Peruvians Vote for President After Months of Chaos and Scandal

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Apr 11 2021, 4:30 PMApr 11 2021, 7:56 PMApril 11 2021, 4:30 PMApril 11 2021, 7:56 PM

(Bloomberg) -- Peruvians are voting for president and congress in a crowded election that will determine whether the nation can restore order after recent political chaos.

Polls show the presidential vote is too close to call and no single candidate will have enough support to avoid a June runoff.

Hanging over the race is the question of who can govern a country that has had three presidents since November, and where every elected head of state but one since 1985 has either been impeached, imprisoned or sought in criminal investigations. Many voters are also angry after hundreds of well-connected Peruvians received Covid-19 shots in secret, in what’s being called the “vaccinegate” scandal.

Former congressman Yonhy Lescano, 62, was leading some major polls on April 4 -- the last day results could be publicly released. He’s promised to share the country’s vast mining wealth more widely and bring down consumer interest rates.

Although Lescano is the frontrunner, he only has about 15% support, and his lead is razor thin. He faces 17 other candidates, including economist Hernando de Soto, an investor favorite whose recent surge in the polls triggered a rally in the nation’s bonds and currency.

Read More: Peru Vote Key to Bonds After Biggest Sol Rally Since 2008

Other candidates with a shot of making it to the second round include Veronika Mendoza, a French-educated former congresswoman who wants the rich to pay a wealth tax; former soccer player George Forsyth; Keiko Fujimori, a former congresswoman who is the daughter of an imprisoned former president; Rafael Lopez Aliaga, a socially conservative businessman wants to drive down “usurious” interest rates; and Pedro Castillo, a community organizer and teacher who says Peru should spend 10% of its gross domestic product on education.

The vote takes place amid a surge in Covid-19 infections and in the aftermath of the worst slump since the 1980s, in which the economy contracted 11.1% last year.

Rudderless

The nation of 32 million people has been in political disarray since November when congress ousted Martin Vizcarra despite his high approval ratings at the time.

“The bizarre spectacle of a president who was quite popular being forced out in what amounted to a rebellion in congress - for Wall Street and the international community it raises the question: Can anyone successfully govern Peru?” said Brian Winter, the editor-in-chief of Americas Quarterly.

With 20 different parties fielding candidates for 130 congressional seats, the new president will have to form a coalition to be able to govern. In that sense, Lescano may have an edge, since his Popular Action party is competitive in the legislative race and his long career in congress gives him some natural allies.

“The candidates that have had a less-confrontational stance are the ones that might create a path toward stability,” said Jose Carlos Requena, a political analyst and columnist in Lima. “Whoever takes office will need to create a coalition so they can actually accomplish something.”

Polls are open from 7 a.m. to 7 p.m. and initial results are expected late Sunday.