The newly-elected President of Peru, Ollanta Humala, was inaugurated late last week. The new government took office at the same time.

The new prime minister is Salomón Lerner Ghitis. He is close to President Humala, but he is also a businessman and his appointment has reassured markets. The same is true for the president’s choice of Finance Minister, Luis Miguel Castilla, who is being seen as business-friendly. The president also reconducted the head of central bank in another move that the markets liked.

Given the president faces a very divided Congress, then these appointments are also perhaps designed to maximise support there.

There is a report on the new government here.