LIMA, Aug 17 (Reuters) - Peru's Finance Minister Mercedes Araoz will be replaced in a cabinet shuffle this week, three sources in the ruling party and close to the government said on Tuesday.
One of the sources said Ismael Benavides, who once led Peru’s largest bank, will be the new finance minister and that a swearing in ceremony was slated for Thursday.
When asked about the potential change, Benavides, who previously served as agriculture minister under President Alan Garcia and as chief executive of Banco de Credito del Peru, declined to comment.
A cabinet shuffle is widely expected so that some ministers, including Prime Miniser Javier Velasquez, can step down to run in regional elections in October.
Araoz has downplayed talk of her own departure and one of her aides denied on Tuesday that she would leave.
But leaders of Garcia’s APRA party have mentioned her as desirable candidate to have run on their ticket. Though she is not currently affiliated with any party, she is seen as having political ambitions.
Peru’s economy is one of the most dynamic in the world at the moment and should expand about 7.0 percent this year. Its economy grew 11.92 percent in June from the same month a year ago, official data showed on Monday.
Despite the swift growth, Araoz and the central bank’s monetary policy director were recently ensnared in a policy rift over the pace of spending by her ministry and whether it was contributing to inflation.
