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LIMA - Peru's new Prime Minister Guido Bellido told Reuters on Saturday that the state plans to participate in key industries, including natural gas and new hydroelectric projects, under a new leftist administration.
Bellido, the top aide to newly inaugurated President Pedro Castillo, said the government will also seek to create new public companies, a shift for the Andean nation which in recent decades has focused on divesting its state-controlled corporations.
Castillo, a former elementary school teacher, and Bellido are now poised to tilt Peru sharply to the left if they can surmount the significant hurdle of getting greenlit by the opposition-led Congress.
They have also established a committee to keep inflation in check, Bellido said, and shore up the waning strength of the local sol currency, which is at a historic low against the dollar largely due to higher political risk, analysts say.
Peru's more moderate Economy Minister Pedro Francke will be in charge of the committee, he said, adding - "We need to stop the dollar's rise" against the local Sol currency.
Francke initially balked at serving under the newly elected party's more hardline prime minister, sparking a last-minute impasse minutes before he was supposed to be sworn into the cabinet. Bellido said that Francke would be expected to consult with the rest of the cabinet.
"Everything is a dialogue, nobody can have an island, the economy is not an island," he said.
Bellido, who is also a congressman for his native Cuzco region, was little-known in Lima political circles before Castillo, won the presidency this June, campaigning with the Marxist-Leninist party Free Peru.
Unlike Castillo, Bellido is a longtime member of Free Peru and defines himself as a socialist.
His other priorities, he said, include ensuring that industries seek warmer relations with the communities they operate in and invest in environment protection.
In a wide-ranging interview from Lima's ornamental government palace, Bellido said he has little concern for potential challenges from Congress, and said Castillo will not be impeached, unlike his predecessor Martin Vizcarra.
Castillo is Peru's fifth president in five years due to continued political turmoil. He has yet to give any interviews since taking office.
"It is a lesson that a peasant is now the president of the republic, it is a cultural lesson," Bellido said, referring to Castillo's background growing up in an impoverished hamlet in rural Peru.
During Castillo's presidential campaign, he accused private enterprise of "plundering" the nation's wealth and said he would seek to nationalize natural gas, gold, silver, uranium, copper and lithium mining projects.