US embassy cable - 05LIMA3594

UNCLAS LIMA 003594 
 
SIPDIS 
 
DEPT FOR E, WHA/FO, WHA/AND, WHA/EPSC, INL/B 
TREASURY FOR OASIA/INL 
COMMERCE FOR 4331/MAC/WH/MCAMERON 
USDA FOR FAS/ITP/GRUNENDFELDER 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON, EFIN, PGOV, PREL, PE, ENIV 
SUBJECT: INTRODUCING MINISTER OF FINANCE FERNANDO ZAVALA 
 
 
1. (SBU) Summary.  On August 16, President Toledo appointed 
former Vice Minister of Economy Fernando Zavala Lombardi to 
replace Pedro Pablo Kuczynski as the Minister of Economy and 
Finance.  Zavala, prior to his position as Vice Minister, 
served as General Manager of Indecopi (Peru's IPR 
Administrator) from 1995-2000.  The business community 
welcomed Zavala's appointment, noting that he has 
effectively worked to resolve contentious disputes between 
the various agencies of the GOP and businesses.  End 
Summary. 
 
Biographical Information 
------------------------ 
 
2. (U) Fernando Zavala Lombardi was named the new Minister 
of Economy and Finance (MEF) on August 16, replacing Pedro 
Pablo Kuczynski (PPK) who became the new Prime Minister. 
Zavala, a trained economist, holds a bachelor's degree in 
Economics from Pacific University in Lima, as well as two 
Master's degrees - one in International Business from the 
University of Birmingham, U.K. and the other in Business 
Administration from Piura University. 
 
3. (U) Prior to working as Vice Minister of Economy, Zavala 
served as General Manager of Indecopi, Peru's IPR 
administrator from 2000-2002.  He has a prior history in 
economic and financial research, having worked as Chief of 
Finance at Apoyo S.A., a highly respected consulting firm 
based in Lima.  Zavala also worked in the private sector, as 
the Chief of Sales at Samtronics Peru in 1994-1995. 
 
4.  (SBU) Zavala has very close ties with the business 
community and has served as a board member for several 
Peruvian corporations, including CONFIDE (Corporation for 
Development Financing), the Commission of National 
Administration, and Inca Publicity.  Zavala is also an 
excellent contact of the Embassy and has worked closely with 
us on several commercial disputes, most notably Exxon-Mobil 
(reftel).  He was instrumental in formulating a strategy 
with Exxon-Mobil, helping the company and the Mining Society 
draft an amendment to the tax law, as well as aiding in 
garnering support among the members of Congress.  Zavala 
continues to work with Exxon-Mobil, and other U.S. 
companies, to deal with commercial issues. 
 
5. (SBU) Zavala, who is 38 years old, is married with two 
children and speaks good English. 
 
The Business Community Reacts 
----------------------------- 
 
6. (SBU) Toledo's naming of Zavala yielded strong support 
from the business community.  Luis Vega, President of Adex 
(Association of Exporters) and excellent contact of the 
Embassy, noted that Zavala, a highly skilled economist, 
understands the need for Peru to improve its investment 
climate, develop employment opportunities, and reduce 
poverty.  He expects that Zavala will continue PPK's 
economic policies, maintaining continuity in the economy, 
which is vital to continued growth. 
 
Comment 
------- 
 
 
7. (SBU) We believe that Fernando Zavala is an excellent 
choice for Minister of Economy and Finance.  We have had a 
strong working relationship with him over the past five 
years during his tenure as Vice Minister and GM of Indecopi. 
Most recently, he played a vital role in several commercial 
disputes, offering advice to U.S. companies and working 
toward resolutions.  Zavala understands the intricacies of 
Peru's tax and tariff laws, and will likely play a role in 
ensuring these laws are properly applied. 
 
STRUBLE