January 1, 2005
When the Panamanian government raised $600 million on the international bond market in November, it did so to pre-finance its $1.1 billion budget gap for 2005. Instead of issuing more global bonds to raise a chunk of the remaining $500 million, the government says it will turn to the local capital market.
"Of the $500 million that we still have to raise, we've already contracted almost $140 million with multilateral lenders," says Aracelly Méndez, Panama's director of public credit. "The rest, about $300 million, will be raised on the domestic market." Of that, Méndez adds, some $250 million involves a refinancing plan since the government's first Treasury note issue fa
Panama turned to the international markets to pre-finance spending for 2005. But when it's time to raise more money, it will stay closer to home.