Investors are going to shy away from Peru until they see a clearer electoral outcome. What hurts the markets more than anything is the uncertainty.

A lot of people were expecting Flores to do better, so there's going to be disappointment. It's going to be messy.

One of the reasons that the central bank raised rates is to try to decrease market volatility that could arise from the election results.

The economy is detached from the political noise surrounding the electoral process.

The present value of the additional public expenditures created by the measure is estimated at about three percentage points of GDP. This bill, if implemented, would also have negative consequences for the private pension system, which as of the end of 2005 had $9.5 billion in assets under management.

The passage of this message is an indication of the potential setbacks to the fiscal sector that could result from a government or congress that wants to pursue a populist agenda.