Panama Progresses With Infrastructure and Mining
Panama is pushing forward on infrastructure, canal expansion and mining. The sovereign is also developing the local debt curve.
Having turned the corner on the
global recession with a still-expanding economy, nearly
balanced books and three investment-grade seals of approval on
its debt, Panama plans to plunge headlong this year into
ambitious infrastructure spending under president Ricardo
The expenditure, which this year will be financed by
multilaterals and local treasury issues, raises concern that
Panama could lose the fiscal restraint that won it upgrades
from Moodys, Fitch and S&P. Officials are however
confident that budget deficits will be within strict legal
limits, affirming Martinelli will end his term in 2014 with a
reduced GDP-to-debt ratio.
"Its a government
commitment," says Dulcidio De La Guardia, Panamas
matter-of-fact vice minister for finance, referring to fiscal
discipline and debt reduction.
Less than a year since Martinelli took office, the
white-haired supermarket magnate wants to make good quickly on
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