Moody’s le otorgó hoy 9 de junio de 2010 la calificación de Baa3 con perspectiva estable a la deuda de Panamá, la cual corresponde a grado de inversión. El 25 de mayo ya Standard & Poor´s le había otorgado la calificación de grado de inversión BBB- y Fitch Ratings se la otorgó el 23 de marzo. Panamá ha logrado así la calificación de grado de inversión de las tres calificadoras más importantes del mundo.
“Los personeros de Moody´s comunicaron oficialmente al ministro de Economía y Finanzas, Alberto Vallarino, la decisión de que su directorio le había elevado la calificación a Panamá”, señaló una nota de prensa de la Secretaría de Comunicaciones del Estado emitida en horas de la tarde y recibida por uno de nuestros corresponsales.
“Estamos sumamente complacidos con esa noticia, toda vez que alcanzar este Grado de Inversión se hace en base al reconocimiento de Moody´s sobre el manejo adecuado de las finanzas públicas, respetando los límites establecidos en la Ley de Responsabilidad Social Fiscal; el crecimiento económico importante que el país ha mantenido aún en medio de una crisis mundial, la reducción en los últimos años de la relación deuda/PIB y el hecho de que contamos con un Plan Estratégico que traza un norte a las inversiones que se desarrollarán durante la administración del Presidente Ricardo Martinelli” señala la nota de prensa.
“Por su parte, la analista de Moody’s, Alessandra Alecci sostuvo que el positivo impacto previsto de las políticas fiscales en las cuentas del Gobierno y las perspectivas de un crecimiento económico sostenido son la razón central del alza en la calificación, al tiempo que señaló que la expansión del Canal de Panamá y un ambicioso programa de inversión en infraestructura probablemente respalden un fuerte crecimiento económico en los próximos años, lo que se acomoda bien para las dinámicas de deuda".
La nota de prensa enfatizó que “cabe recordar que el ministro Vallarino, personalmente, visitó la sede de Moody´s en Nueva York en donde explicó detalladamente el Plan Estratégico 2010-2014, impulsó una política económica que logró cerrar 2009 con un crecimiento de 2.4%, y junto a los vice ministros Frank De Lima, Dulcidio De La Guardia y su equipo de trabajo, trazaron una estrategia para sacar a Panamá de las listas grisas de OCDE, detalles que fueron considerados por Moody’s para reconocer la nueva calificación que en América Latina, sólo poseen Brasil, México, Perú y Chile.”
Resumiendo, han ayudado en esta decisión de las calificadoras la perspectiva de crecimiento económico en el mediano plazo, así como las perspectivas fiscales, incluyendo las mejoras esperadas en la recaudación, luego de la reciente reforma tributaria. Panama Economy Insight piensa que también fue importante el crecimiento económico de 2.4% logrado el año pasado en medio de una de las peores recesiones de la economía mundial, así como el hecho de que a pesar de la abrupta caída del crecimiento económico el déficit del Sector Público no Financiero (SPNF) fue de apenas 1% del PIB. También fue muy positiva la disciplina fiscal del periodo 2006-2008, con superávit fiscales cuando hubo bonanza económica, pues eso permitió que la calificación fuera ascendiendo peldaño a peldaño en la escalera de calificación. Antes de eso, la calificación se había hundido profundamente debido a grandes déficit fiscales de casi 5% del PIB durante los años 2003 y 2004, luego de una recesión en los Estados Unidos que terminó afectando a Panamá con rezagos de tiempo.
La perspectiva positiva en positiva en el mediano plazo ha estado impulsada por el Plan Estratégico anunciado recientemente por el gobierno, el cual contempla inversiones por US$13,600 millones en el periodo de 2010-2014, la cual más que duplican las inversiones del gobierno anterior. Con esto, la inversión pública y privada será en el periodo 2010-2014 por aproximadamente 40 mil millones de dólares, es decir, el doble de lo que fue en el periodo de 2005-2009. La ampliación del Canal, la construcción de un metro en la Ciudad de Panamá, la extensión de la cinta costera, el proyecto de saneamiento de la Bahía de Panamá y la construcción de la autopista Madden-Cuatro Altos son algunos de los proyectos públicos. Proyectos mineros, de refinación de petróleo, de generación eléctrica y de turismo, entre otros van a darle el nuevo impulso a la inversión privada en los años 2012-2014.
Panama Economy Insight pronostica que este año la economía de Panamá sólo crecerá 3.3%, pero en los años 2011 y 2012 va crecer 7.3% y 9.5% respectivamente. Este boom de crecimiento llevará a la tasa de desempleo a los niveles más bajos que haya experimentado; ésta estará entre 4.4% y 4% en los años 2013 y 2014. El Sector Público no Financiero (SPNF) podría mantenerse durante todo el periodo que cubre el Plan Estratégico con un déficit que fluctuaría entre 0.7% y 1.9%. A pesar de que la deuda pública aumentaría, dicho incremento no tendría impacto negativo sobre las finanzas públicas dado que la economía estaría creciendo a una mayor velocidad y la relación deuda-PIB estaría cayendo constantemente. En 2010 la deuda como porcentaje del PIB nominal podría ser 45.7 y caería paulatinamente hasta 36 en 2014.
El efecto directo de la calificación de riesgo de las tres calificadoras de riesgo más importantes del mundo es un aumento del precio de los bonos globales de la deuda de Panamá y una reducción de la tasa que se paga sobre éstos. La demanda de bonos crece porque hay empresas en el mundo, que debido a sus políticas de inversión en valores, sólo se les permite comprar instrumentos que tengan grado de inversión. En este sentido, la calificación de Moody’s, otorgada en el día de hoy, refuerza la posición de los instrumentos de deuda de Panamá. La calificación hará que el número de compradores aumente aún más y, en consecuencia, el precio de los bonos también. Con este aumentado de la demanda, la tasa que se paga sobre estos instrumentos debe bajar aún más. El beneficio para el país será una reducción de costo de la deuda a través del tiempo.
El efecto indirecto será un aumento de la confianza en las perspectivas económicas del país, la seguridad jurídica de las inversiones y la estabilidad política, pues, las calificadoras de riesgo han tomado en cuenta, de una forma u otra, algunos de estos elementos al otorgarle a la deuda de Panamá el grado de inversión. En este sentido, es de suponerse que el efecto indirecto de las calificaciones de grado de inversión sea la llegada a Panamá de más inversiones extranjeras. La calificación refuerza el atractivo de la Ley de Sede de Empresas Multinacionales, la cual ha hecho que en Panamá se establezcan más de 35 empresas multinacionales, y la Ley del Área Económica Especial Panamá Pacifico, que ya cuenta con más de 50 empresas, en donde London & Regional Panamá desarrolla actualmente un complejo logístico que contempla inversiones por 405 millones de dólares en el periodo 2008-2016.
Finalmente, el equipo encargado del pronóstico económico de Panama Economy Insight invita a los lectores de nuestros análisis a que voten en la encuesta sobre el crecimiento económico que se presenta en la parte superior derecha de este artículo.
PANAMA ECONOMY INSIGHT MONITOR
Ayudándole a tomar decisiones en un entorno económico global
Showing posts with label Debt risk rating. Show all posts
Showing posts with label Debt risk rating. Show all posts
Wednesday, June 9, 2010
Tuesday, May 25, 2010
Standard & Poor's sube la calificación de la deuda de Panamá a grado de inversión
Standard & Poor´s le otorgó hoy 25 de mayo de 2010 la calificación BBB- a la deuda de Panamá, la cual corresponde a grado de inversión. El 23 de marzo de 2010 Fitch Ratings ya le había otorgado esta calificación a la deuda de Panamá. Se espera que Moody’s también le otorgue grado de inversión a Panamá próximamente.
En años previos, el Sector Público No Financiero (SPNF) mostró superávit, lo cual en conjunto con un fuerte crecimiento económico durante ese periodo permitió bajar la deuda como porcentaje del PIB de 70.4 en 2004 a 46.4 en 2009. El déficit del SPNF el año pasado, en medio de una de las peores crisis económicas del mundo, fue de apenas 1% del PIB y la economía creció 2.4%. El 17 de mayo del presente año el gobierno anunció que el déficit SPNF fue de apenas 0.6% del PIB y se espera que la economía crezca entre 3% y 5% de acuerdo a diversas fuentes, incluyendo en este rango la predicción de Panama Economy Insight de 3.3% y la del Fondo Monetario Internacional de 5%.
¿Qué significa la calificación de grado de inversión para Panamá?
El efecto directo es un aumento del precio de los bonos globales de la deuda de Panamá y una reducción de la tasa que se paga sobre éstos. La demanda de bonos crece porque hay empresas en el mundo, que debido a sus políticas de inversión en valores, sólo se les permite comprar instrumentos que tengan grado de inversión. En este sentido, la calificación de Standard & Poor´s refuerza la posición de los instrumentos de deuda de Panamá. La calificación de Standard & Poor´s hará que el número de compradores aumente aún más y, en consecuencia, el precio de los bonos también. Con este aumentado de la demanda, la tasa que se paga sobre estos instrumentos puede bajar aún más. El beneficio para el país será una reducción de costo de la deuda a través del tiempo.
El efecto indirecto será un aumento de la confianza en las perspectivas económicas del país, la seguridad jurídica de las inversiones y la estabilidad política, pues, las calificadoras de riesgo han tomado en cuenta, de una forma u otra, algunos de estos elementos al otorgarle a la deuda de Panamá el grado de inversión. En este sentido, es de suponerse que el efecto indirecto de las calificaciones de grado de inversión sea la llegada a Panamá de más inversiones extranjeras.
En años previos, el Sector Público No Financiero (SPNF) mostró superávit, lo cual en conjunto con un fuerte crecimiento económico durante ese periodo permitió bajar la deuda como porcentaje del PIB de 70.4 en 2004 a 46.4 en 2009. El déficit del SPNF el año pasado, en medio de una de las peores crisis económicas del mundo, fue de apenas 1% del PIB y la economía creció 2.4%. El 17 de mayo del presente año el gobierno anunció que el déficit SPNF fue de apenas 0.6% del PIB y se espera que la economía crezca entre 3% y 5% de acuerdo a diversas fuentes, incluyendo en este rango la predicción de Panama Economy Insight de 3.3% y la del Fondo Monetario Internacional de 5%.
¿Qué significa la calificación de grado de inversión para Panamá?
El efecto directo es un aumento del precio de los bonos globales de la deuda de Panamá y una reducción de la tasa que se paga sobre éstos. La demanda de bonos crece porque hay empresas en el mundo, que debido a sus políticas de inversión en valores, sólo se les permite comprar instrumentos que tengan grado de inversión. En este sentido, la calificación de Standard & Poor´s refuerza la posición de los instrumentos de deuda de Panamá. La calificación de Standard & Poor´s hará que el número de compradores aumente aún más y, en consecuencia, el precio de los bonos también. Con este aumentado de la demanda, la tasa que se paga sobre estos instrumentos puede bajar aún más. El beneficio para el país será una reducción de costo de la deuda a través del tiempo.
El efecto indirecto será un aumento de la confianza en las perspectivas económicas del país, la seguridad jurídica de las inversiones y la estabilidad política, pues, las calificadoras de riesgo han tomado en cuenta, de una forma u otra, algunos de estos elementos al otorgarle a la deuda de Panamá el grado de inversión. En este sentido, es de suponerse que el efecto indirecto de las calificaciones de grado de inversión sea la llegada a Panamá de más inversiones extranjeras.
Wednesday, March 24, 2010
Panama achieved investment grade
On March 23rd, Fitch Ratings improved the Panama’s sovereign credit rating to investment-grade. Recently Standard & Poor improved Panama debt risk rating from BB+ with stable perspective to BB+ with positive perspective. Standard & Poor and Mody’s could also improve the Panama debt risk rating to investment grade in next months.
Panama’s investment grade could reduce the debt cost and to boost the country's attractiveness to the foreign investor. Panama debt cost could decrease because lower interest rates of global bonds as a result of Panama would be sees as a low-risk sovereign country.
The key factors that helped to achieve the investment grade were:
• The government fiscal performance
• The tax reform
• Economic growth despite the global downturn
• The economic outlook
The government fiscal performance
On February 11st 2010, Panama Government announced that, despite the global downturn, the fiscal deficit of Non Financial Public Sector (NFPS) was by only 1% of GDP in 2009. Government achieved to down the NFPS deficit from 2.3% (US$575.2 million) from January to September to 1% (US$253.3 million) from January to December. Government explained that collected almost US$200 million plus due to “ley de moratoria” (a fiscal law that allow to pay taxes without penalty by delay), which allowed to down the NFPS deficit to 1%. Government fiscal performance was better than Panama Economy Insight forecasted; Panama Economy Insight forecasted the NFPS deficit by 2.3%, but this was by only 1% due to “ley de moratoria” among others factors.
In previous years the NFPS showed surplus, which allowed to down the public debt as percent of GDP, which also contributed to achieve the investment grade. Public debt as percent of GDP fell from 70.4 in 2004 to 46.4 in 2009.
The tax reform
In March of 2010, Legislative Assembly approved a second phase of the tax reform. This second phase of the tax reform includes a higher contribution of the banking sectors among other activities. The first phase occurred successfully a few months ago, when achieved a greater contribution from Colon Free Trade Zone and container transshipment ports, among others economic sectors.
All those who earn US$9,500 and less per year do not pay income tax; they are 80% of the worker population. The tax reform extended this range to US$11,000. Workers with incomes between US$11,000 and US$50,000 will pay 15% on the surplus of US$11,000. Those with incomes between US$50,000 and more will pay 25% on the surplus of US$50,000. This tax reform reduced the effective rate for all workers that currently pay taxes.
Tax structure is progressive, based on the principle that those who earn most are those who must pay more taxes. This progressive structure remained with the tax reform, but the effective rates were reduced substantially for all workers. This progressive structure is appropriate in Panama where wages are relatively low and income distribution is very unequal. This tax reform will improve the situation of workers that pay taxes.
An aspiration of the Government since the electoral campaign was to become the progressive tax structure in a flat tax. A flat tax is a tax structure with a single rate. Theoretically, this single rate should be chosen of manner such that the sum of tax collected is at least equivalent to the sum collected currently. However, the problem is that will appear winners and losers, because for some its current effective rate would be at the top, while for others would be by below. The complexity of a flat tax in Panama is that 80% of workers do not pay income tax. In other words, only 20% of the workers contribute to income tax. Panama Economy Insight estimated that a flat tax of 6% on wage would collect the same amount of current tax structure. However, 50% of the collection would come of the 80% currently do not pay tax. Therefore, it is very complex to become current tax progressive structure in a flat tax.
Nevertheless, ITBMS (a tax on sales) was increased from 5% to 7% to compensate the reduction of income tax. In consequences, those workers that earn US$9,000 per year and do not pay income taxes, with the tax reform should pay an increase of two percent of ITBMS. However, foods, non-alcoholic beverages, electricity consumption, water, books and supplies for students do not pay ITBMS and Government has explained that the negative impact on low income household will be not strong. This increase will affect to consumption of cell phone, Internet, , clothes, shoes and cars purchases among others goods and services.
Economic growth despite the global downturn
On March 2nd 2010, the Government announced that the GDP grew by 2.4% in 2009. This economic growth occurred despite of the global economic downturn.
Economic activities linked to external demand plummeted, because to connection with world markets, but economic activities linked to domestic demand grew, and helped to offset of GDP contraction. Economic sectors linked to external markets that contracted were agricultural and seafood exports, Colon Free Trade Zone exports, railway, container transshipment ports, Panama Canal, bunker sales to ships, air transport, travel agencies, banking and real estate. Economic activities linked to domestic demand that grew were electric power generation, retail, restaurants, domestic transport by road, telecommunications, teaching, private health care and social services.
The agriculture and fishing value added contracted by 8.6% and 2.9% in 2009 respectively, according to GDP report published by the General Comptroller of the Republic of Panama on its website on March 2nd 2009, as a result of sharp contraction of U.S. and European Union export demand.
The wholesale and retail value added contracted 3.7% in 2009, according GDP report published by General Comptroller, as a result of Colon Free Trade Zone value added contraction by 9.2%. Colon Free Trade Zone (CFTZ) was affected by fell of Venezuela and Ecuador oil prices. Moreover, Ecuador imposed commercial restrictions against CFTZ imports to protect the foreign reserve.
Panama Canal, railway and air transport value added fell by 10.5%, 9%, 22.6% and 3.7% in 2009 respectively. Nevertheless, “transport, warehousing and communication” sector (which includes to Panama Canal, ports, railway and air transport) expanded by 8.3%, due to growth sudden and extraordinary of the telecommunications sector by 38.5%. This extraordinary increase of telecommunications was due to entry of two new competitors companies (Digicel and Claro) which expanded the cell phone supply and disputed this market to incumbent companies (Cable & Wireless and Movistar).
Banking value added fell by 2.2% in 2009, because the credit banks restricted the credit and sacrificed profits how measure to offset the global financial downturn. However, bank profits were substantially positives. National Banking System continues been one of most strong in Latin America and the better faced the global financial downturn.
Real estate value added contracted by 4.6% in 2009, as a result of collapse of the U.S. house prices. Baby boomer’s real estate demand contracted sharply as a result of collapse of the U.S house prices. The baby boomers could not sale your houses in United States and move them to Panama.
Public administrations value added expanded by 2.4% in 2009.
The economic outlook
Demand sectors linked to external market yet is weak, however Panama Economy Insight expect to recovery in 2010. Panama Economy Insight forecast that the economic growth will be by only 2.3%, despite Panama Canal is expanding. However, Ministry of Economy and Finance, ECLAC and IMF forecast that Panama economy will grow by 5%, 4.5% and 3.7% respectively.
Panama Economy Insight expects a strong growth in 2011 and 2012 by 9.4% and 8.6% respectively, as a result of external demand expansion, the recovery of the baby boomer real estate market , Canal expansion, construction a subway in Panama City, among others private and public investment. This growth will allow the unemployment rate down to 4.8% and 4.6 % in 2011 and 2012 respectively.
IMF forecasts that economic growth will be 6.1% and 7% in 2011 and 2012 respectively.
By 2010, Panama Economy Insight forecasts that the NFPS will experience another deficit by 2.1%, because economic growth of just 2.3%, but this deficit would fall to less than one percentage point of GDP in 2011 and 2012 and the public debt as percentage of GDP will reduce to 38.9% of GDP in 2012 because rapid economic expansion.
Panama’s investment grade could reduce the debt cost and to boost the country's attractiveness to the foreign investor. Panama debt cost could decrease because lower interest rates of global bonds as a result of Panama would be sees as a low-risk sovereign country.
The key factors that helped to achieve the investment grade were:
• The government fiscal performance
• The tax reform
• Economic growth despite the global downturn
• The economic outlook
The government fiscal performance
On February 11st 2010, Panama Government announced that, despite the global downturn, the fiscal deficit of Non Financial Public Sector (NFPS) was by only 1% of GDP in 2009. Government achieved to down the NFPS deficit from 2.3% (US$575.2 million) from January to September to 1% (US$253.3 million) from January to December. Government explained that collected almost US$200 million plus due to “ley de moratoria” (a fiscal law that allow to pay taxes without penalty by delay), which allowed to down the NFPS deficit to 1%. Government fiscal performance was better than Panama Economy Insight forecasted; Panama Economy Insight forecasted the NFPS deficit by 2.3%, but this was by only 1% due to “ley de moratoria” among others factors.
In previous years the NFPS showed surplus, which allowed to down the public debt as percent of GDP, which also contributed to achieve the investment grade. Public debt as percent of GDP fell from 70.4 in 2004 to 46.4 in 2009.
The tax reform
In March of 2010, Legislative Assembly approved a second phase of the tax reform. This second phase of the tax reform includes a higher contribution of the banking sectors among other activities. The first phase occurred successfully a few months ago, when achieved a greater contribution from Colon Free Trade Zone and container transshipment ports, among others economic sectors.
All those who earn US$9,500 and less per year do not pay income tax; they are 80% of the worker population. The tax reform extended this range to US$11,000. Workers with incomes between US$11,000 and US$50,000 will pay 15% on the surplus of US$11,000. Those with incomes between US$50,000 and more will pay 25% on the surplus of US$50,000. This tax reform reduced the effective rate for all workers that currently pay taxes.
Tax structure is progressive, based on the principle that those who earn most are those who must pay more taxes. This progressive structure remained with the tax reform, but the effective rates were reduced substantially for all workers. This progressive structure is appropriate in Panama where wages are relatively low and income distribution is very unequal. This tax reform will improve the situation of workers that pay taxes.
An aspiration of the Government since the electoral campaign was to become the progressive tax structure in a flat tax. A flat tax is a tax structure with a single rate. Theoretically, this single rate should be chosen of manner such that the sum of tax collected is at least equivalent to the sum collected currently. However, the problem is that will appear winners and losers, because for some its current effective rate would be at the top, while for others would be by below. The complexity of a flat tax in Panama is that 80% of workers do not pay income tax. In other words, only 20% of the workers contribute to income tax. Panama Economy Insight estimated that a flat tax of 6% on wage would collect the same amount of current tax structure. However, 50% of the collection would come of the 80% currently do not pay tax. Therefore, it is very complex to become current tax progressive structure in a flat tax.
Nevertheless, ITBMS (a tax on sales) was increased from 5% to 7% to compensate the reduction of income tax. In consequences, those workers that earn US$9,000 per year and do not pay income taxes, with the tax reform should pay an increase of two percent of ITBMS. However, foods, non-alcoholic beverages, electricity consumption, water, books and supplies for students do not pay ITBMS and Government has explained that the negative impact on low income household will be not strong. This increase will affect to consumption of cell phone, Internet, , clothes, shoes and cars purchases among others goods and services.
Economic growth despite the global downturn
On March 2nd 2010, the Government announced that the GDP grew by 2.4% in 2009. This economic growth occurred despite of the global economic downturn.
Economic activities linked to external demand plummeted, because to connection with world markets, but economic activities linked to domestic demand grew, and helped to offset of GDP contraction. Economic sectors linked to external markets that contracted were agricultural and seafood exports, Colon Free Trade Zone exports, railway, container transshipment ports, Panama Canal, bunker sales to ships, air transport, travel agencies, banking and real estate. Economic activities linked to domestic demand that grew were electric power generation, retail, restaurants, domestic transport by road, telecommunications, teaching, private health care and social services.
The agriculture and fishing value added contracted by 8.6% and 2.9% in 2009 respectively, according to GDP report published by the General Comptroller of the Republic of Panama on its website on March 2nd 2009, as a result of sharp contraction of U.S. and European Union export demand.
The wholesale and retail value added contracted 3.7% in 2009, according GDP report published by General Comptroller, as a result of Colon Free Trade Zone value added contraction by 9.2%. Colon Free Trade Zone (CFTZ) was affected by fell of Venezuela and Ecuador oil prices. Moreover, Ecuador imposed commercial restrictions against CFTZ imports to protect the foreign reserve.
Panama Canal, railway and air transport value added fell by 10.5%, 9%, 22.6% and 3.7% in 2009 respectively. Nevertheless, “transport, warehousing and communication” sector (which includes to Panama Canal, ports, railway and air transport) expanded by 8.3%, due to growth sudden and extraordinary of the telecommunications sector by 38.5%. This extraordinary increase of telecommunications was due to entry of two new competitors companies (Digicel and Claro) which expanded the cell phone supply and disputed this market to incumbent companies (Cable & Wireless and Movistar).
Banking value added fell by 2.2% in 2009, because the credit banks restricted the credit and sacrificed profits how measure to offset the global financial downturn. However, bank profits were substantially positives. National Banking System continues been one of most strong in Latin America and the better faced the global financial downturn.
Real estate value added contracted by 4.6% in 2009, as a result of collapse of the U.S. house prices. Baby boomer’s real estate demand contracted sharply as a result of collapse of the U.S house prices. The baby boomers could not sale your houses in United States and move them to Panama.
Public administrations value added expanded by 2.4% in 2009.
The economic outlook
Demand sectors linked to external market yet is weak, however Panama Economy Insight expect to recovery in 2010. Panama Economy Insight forecast that the economic growth will be by only 2.3%, despite Panama Canal is expanding. However, Ministry of Economy and Finance, ECLAC and IMF forecast that Panama economy will grow by 5%, 4.5% and 3.7% respectively.
Panama Economy Insight expects a strong growth in 2011 and 2012 by 9.4% and 8.6% respectively, as a result of external demand expansion, the recovery of the baby boomer real estate market , Canal expansion, construction a subway in Panama City, among others private and public investment. This growth will allow the unemployment rate down to 4.8% and 4.6 % in 2011 and 2012 respectively.
IMF forecasts that economic growth will be 6.1% and 7% in 2011 and 2012 respectively.
By 2010, Panama Economy Insight forecasts that the NFPS will experience another deficit by 2.1%, because economic growth of just 2.3%, but this deficit would fall to less than one percentage point of GDP in 2011 and 2012 and the public debt as percentage of GDP will reduce to 38.9% of GDP in 2012 because rapid economic expansion.
Saturday, January 16, 2010
Standard & Poor roses Panama debt risk rating
Recently Standard & Poor roses Panama debt risk rating from BB+ with stable perspective to BB+ with positive perspective. This means that Panama debt is only a step of the so-called investment degree. Achieve this investment degree, the Panama debt cost could decrease because lower interest rates of global bonds because Panama would be see as a low-risk sovereign country. In fact, the iceberg tip began to see when the Panama Government, taking advantages of the improvement of the risk rating, issued global bonds for thousand millions of dollars reaching rates significantly lower than the current.
The Panama Government is using this money to pay off an old debt with the Panama National Bank (Banco Nacional de Panamá) and the Social Security Fund (Caja de Seguro Social). This means that you would be injecting money to these public entities. It is likely that the Social Security Fund invest that money in private instruments or of the Government. In the case of the Panama National Bank, it would use it to provide, which would substantially improve the supply of credit of the banking system National, which from January to October it has contracted in 15% year on year...read more
The Panama Government is using this money to pay off an old debt with the Panama National Bank (Banco Nacional de Panamá) and the Social Security Fund (Caja de Seguro Social). This means that you would be injecting money to these public entities. It is likely that the Social Security Fund invest that money in private instruments or of the Government. In the case of the Panama National Bank, it would use it to provide, which would substantially improve the supply of credit of the banking system National, which from January to October it has contracted in 15% year on year...read more
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