The Peruvian Congress approved a bill allowing...

The Peruvian Congress approved a bill allowing the state to take control of private banks--a move that opens the way for President Alan Garcia to sign the measure into law. The Chamber of Deputies decided by acclamation after a 12-hour debate not to insist on changes to a draft approved earlier by the Senate. The proposal to take over 10 private banks and 23 finance and insurance houses has dominated Peruvian political life since Garcia announced it on July 28. The bill will allow foreign banks with existing offices in Peru to continue operating, but will prohibit others from opening branches. Garcia was expected to sign the legislation into law within hours. At as news conference following passage of the legislation, Peru’s senior private bankers said they will take every legal measure open to them to prevent the takeover of their businesses.