Peru Leftist Candidate Pledges to Seize Foreign Company Profits

(Bloomberg) -- Peruvian presidential front-runner Pedro Castillo said he’ll review contracts with transnational companies in an effort to increase onshore wealth.

In a debate with Keiko Fujimori ahead of the June 6 runoff, leftist Castillo said multinationals should expect to leave 70% of their profits in Peru.

“Enough of looting my people,” the 51-year-old school teacher said in his hometown region, Cajamarca.

As part of his populist package, Castillo said he’ll seek to raise investment in education to 10% of gross domestic product. He also proposed lowering the pension age to 60 and cutting lawmakers’ wages by half. He said he would decline compensation as president.

Peruvian assets have fallen as the presidential election approaches with the sol touching record lows this week.

Castillo maintained a shrinking but commanding lead of 44% versus 34% for Fujimori, daughter of jailed former President Alberto Fujimori, according to a poll released Friday by Datum. A full 11% of voters remain undecided, and 11% plan to cast blank or invalidated ballots, the survey found.

Fujimori said she’ll boost the economy by creating 2 million jobs, increasing cash transfers for the elderly and buying debt from small companies.

©2021 Bloomberg L.P.