The Fiscal Stabilization Fund (FEF) was created by the Fiscal Prudence and Transparency Law in 1999, in the context of Peru's first Macro-Fiscal Framework. The Fund is designed to accumulate excess revenue during periods of high economic growth in order to weather economic downturns. The Fund had US$ 5.4 billion through the end of 2019 but saw the value fall to US$ 1 million at the end of FY 2020, reflecting a large distribution to finance emergency COVID-19 funding.
Assets under Management (AuM):
Alternative Assets: 0%
“To accumulate resources during economic booms in order to be able to use them in times of recession or contingencies, such as natural disasters.” (Stabilization Fund)