Markets had already assumed that Panama would lose its investment grade rating, which had an impact on the country’s funding costs, warned Carlos Berguido, president of the Panama Banks Association.
Although in his personal capacity Berguido does not yet see this loss as a certainty, the CEO emphasized that the reports are mixed credit rating agencies They send these signals to the markets.
“The markets have already taken it for granted. Of course, this is linked to the international rise in the price of money as a result of the fight against inflationwhich we have been feeling for two years,” he told Nex Noticias.
In this sense, he added, these are two factors that make money more expensive in the world, and in Panama it is even more severe due to the possible loss of investment grade.
Could there be an increase in local banking products?
According to Berguid, the increase is already happening in both liabilities and assets.
“In other words, there was a significant increase in interest rates for both deposits and loans,” he added.
He emphasized that the actions taken by the United States Federal Reserve will determine whether or not these rates will continue to rise in Panama.
“So far, he has not lowered rates, nor raised them. He decided to keep them stable because inflation is still a monster that they have not been able to control in the US,” he mentioned.
He added that Panamanian rates can be expected to be the product of a delayed effect relative to NOW., will continue to grow a bit more, but not necessarily as quickly as seen in 2023.
Berguido emphasized that benchmark mortgage interest rates in Panama today are lower than the average of comparable mortgage rates in the United States.
This week, the European Union kept Panama on its list of tax havens. Berguido said that the effects of being in the has been feeling for some time and does not believe there is an incremental risk factor, but it is a question that must be addressed given the importance of this strategic ally.
Source: Panama America
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
On the same day of the terrorist attack on the Krokus City Hall in Moscow,…
class="sc-cffd1e67-0 iQNQmc">1/4Residents of Tenerife have had enough of noisy and dirty tourists.It's too loud, the…
class="sc-cffd1e67-0 iQNQmc">1/7Packing his things in Munich in the summer: Thomas Tuchel.After just over a year,…
At least seven people have been killed and 57 injured in severe earthquakes in the…
The American space agency NASA would establish a uniform lunar time on behalf of the…
class="sc-cffd1e67-0 iQNQmc">1/8Bode Obwegeser was surprised by the earthquake while he was sleeping. “It was a…