June 24, 2019 |
Project finance deals will return as the new government revives a dormant pipeline
The project finance in Panama is expected to grow sharply as the new administration of President Laurentino Cortizo revives a number of dormant projects.
"Many projects that were held last year are being reactivated. The construction sector is going to grow and so will financing for companies and suppliers," a ratings analyst told LatinFinance.
Panama's project finance pipeline includes a third metro line, a new bridge over the Panama Canal, wastewater treatment projects and programs to increase mining production, especially for copper, the analyst said.
Local banks will likely finance most of the projects, but international lenders could also provide funding for turnkey projects, she added.
According to a report from Moody's, corporate credit will rise 8% in Panama this year as the economy grows 5.5% in 2019 and 5.7% in 2020.