Finance Chief Popular With Investors Quits Amid Peru Crisis

(Bloomberg) -- Peru's investor-friendly Finance Minister Pedro Francke quit on Tuesday as President Pedro Castillo overhauls his cabinet amid a political crisis.

Francke announced his departure on Twitter on Tuesday, thanking the president and expressing a wish that the new cabinet strengthens the fight against corruption.

Peru's bonds and currency rallied when Francke was first appointed last July, as investors saw him, alongside central bank chief Julio Velarde, as a defender of the nation's economic model, which has delivered rapid economic growth in recent years. Hard liners in Castillo's socialist Peru Libre party, on the other hand, wanted him out.

Francke's departure comes as Castillo grapples with multiple crises, including a catastrophic oil spill, the resignation of his interior minister, and an surge in crime that to a state of emergency in Lima.

The sol led emerging market losses on Tuesday after Prime Minister Mirtha Vasquez said Monday that she was quitting due to differences with other members of the government. Castillo hasn't yet named their replacements.

The president has repeatedly made changes to his cabinet since taking office six months ago, as he has been torn between the need to appease socialists in his own party while also maintaining a working relationship with congress. Some ministers were also toppled by scandals.

In December, Castillo survived an attempt by some opposition lawmakers to start impeachment proceedings against him. The economy shrugged off the political turmoil, however, and bounced back last year to grow 12.7%, according to estimates of economists surveyed by Bloomberg.