The new debt with government contractors would be $300 million

He The government continues to have difficulties respect its suppliers, and the debt it has accumulated with contractors since April 2023 could be similar to the $300 million they owed by March of that year.

In the statement given Panama America November 15 past, president in Panama Chamber of Construction (Capac), Carlos Allen, Allen He indicated that a new debt had accumulated since April, the figure of which he did not know at the time.

“From April to today, there is a new debt that continues to accumulate. Let’s remember that government contractors They charge monthly and that debt accumulates month after month,” said Alen.

Yesterday, Wednesday, Allen revealed that the figure will be around over 200 million dollars and maybe reaches 300 million dollars.

President of the association Capac expressed that the government He is financially very affected and bills are paid very late.

This means that the implementation of infrastructure projects is slower, which affects construction sector.

Capac expected 2023 to be the year recovery to pre-pandemic levels, However, the reality was different.’

In 2020 and 2021, the government sought external loans to cover operating and business costs, giving it priority over public investment.

The prospects are complicated considering that elections are next year and that the Government is entering its last six months.

According to President Capac, what the Government lacks is financial planning in order to fulfill its obligations on time.

The $1.3 billion turnkey projects are another measure that could jump-start construction, Allen said.

Allen admitted that last year he was imprisoned for under the projections.

By November, construction permits were worth $900 million, an amount that Capac hopes that it will be similar to the one in 2022but not what the union projected.

What influenced that no will reach the goal?

First, the rise in interest rates at the beginning of 2023 affected the sector, and then the of protests against the mine, in the month of November.

In addition, according to Allen, the real estate sector was hit hard by problems of trust and purchasing power.

“Trustworthy, because all these situations like rising interest rates and crises like the one we’ve just experienced create this pause in buying home or business premises and obviously, there is an impact”, said the President of the Trade Union.

To make?

Despite this panorama, Carlos Allen keeps hope alive that the situation will improve, in addition to the fact that he does not foresee it Panama is losing credibility on international markets.

“We must continue to promote projects in order to try to make this year and 2025 prosperous and we are sure that Panama will recover,” he said.

In that sense, Allen sees the 46% progress that Metro Line 3 is showing as positive Western Panamaand other projects such as the imminent start of construction of the fourth bridge over the Panama Canal and the awarding of renovation works Pan American Highway from eastern Panama to Darienwhich will generate great economic activity in the area.