Peru to close embassies, streamline local governments
Peru's new government said in a statement Monday that it would close six embassies, halve its diplomatic staff and streamline local governments.

The country's cabinet approved these measures as part of austerity plans at its first meeting Sunday night.

The plan is to eliminate prefectures and sub-prefectures, but to create a committee that will coordinate regional fiscal policy and punish those who break Peru's transparency rules.

Alan Garcia, who began his presidential term on Friday, announced a series of austerity plans.

On the first day he took office, the new president declared his own salary of 16,000 new soles (about 4,570 U.S. dollars) per month, a 60-percent cut. Deputies and ministers will receive 15,600 new soles (about 4,470 dollars) a month. The pay cuts will also affect mayors, and governors of regions, provinces and districts.