High real GDP growth, supported by a significant rise in investment. A low and declining general government debt burden. Still-evolving political institutions in the context of significant economic, social, and ethnic fragmentation as well as high poverty levels. A significant (albeit declining) level of financial dollarization, with 45% of bank claims on residents in U.S. dollars as of June 2011. The ratings on the Republic of Peru reflect our expectation that broad fiscal and monetary policy continuity under Ollanta Humala's new government will support stronger economic policy flexibility and growth. In July 2011, Mr. Humala—President-Elect at the time—signaled macroeconomic policy continuity by reappointing the respected president of the central bank, Julio Velarde, and appointing another respected technocrat, Luis Miguel Castilla,
