More Moves To Stop Sol

Peruvian President Alan García has guaranteed that his government will reconstruct infrastructure in areas of the country's Cusco province severely damaged during flooding in late January. Torrential rains caused PEN0.8-1.0bn (US$280-340mn) of damage according to the region's president, and left around 2,000 tourists stranded after rail services to Machu Picchu were suspended. While we anticipate that a successful response to the flooding may offer a short-term boost to García's low approval ratings, we believe that ongoing tensions over foreign mining concessions and still-high violent crime levels will prevent a sustained rally in his popularity.

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