FACTBOX-Key political risks to watch in Peru

By Terry Wade and Caroline Stauffer

LIMA, June 20 (Reuters) - Investors will be closely watching left-wing President-elect Ollanta Humala when he takes office on July 28 to see if he will be a steady hand on economic policy or roll back years of free-market reforms.

Humala, who has never held office before, tried to shed his radical image during the campaign but still worries Peru's financial markets.

He will also face a growing illegal drug trade, strikes by miners, and environmental disputes that could hurt one of the world's fastest-growing economies.

HUMALA'S VICTORY

Humala, 48, narrowly won the June 5 run-off election for president. He overtook right-wing lawmaker Keiko Fujimori at the end of the campaign as he softened his hard-line leftist tone and says he plans to emulate former Brazilian President Luiz Inacio Lula da Silva, a moderate leftist.

Humala vows to tackle widespread corruption and has appealed to poor voters by promising to better distribute Peru's growing wealth, though he has ruled out taking over private companies to achieve his goals like his former political mentor, Venezuela's socialist President Hugo Chavez.

The election left a deeply divided country as 48.5 percent of voters and most of the business class voted for Fujimori. But a poll from Ipsos Apoyo on June 19 gave Humala a 70 percent approval rate and said 78 percent of voters believe he will govern as a moderate, suggesting reconciliation is possible.

Humala made numerous changes to his platform throughout the campaign to win over moderate voters, including dropping a call to renegotiate free-trade agreements and replace a privately-run pension system with one run by the government.