APEDE calls for strict fiscal discipline to avoid a country embargo

The Panamanian Association of Business Executives (APEDE) expressed concern this Friday considering that Panamanian public debt instruments are being bought and sold on the international market at a higher price than other countries in the region.

Faced with this scenario, APEDE considers it important for the National Government to maintain open communication with risk assessment agencies and establish periodic calls with local and international investors.

This would allow timely reporting of any progress on pending tasks.

“APEDE strongly urges this and the future government focus on strict fiscal discipline, make progress in terms of transparency and defining the goals and/or tasks of each state institution,” the association said.

APEDE claims that this is essential in order to maintain at all times the goal of creating the country that Panamanians want, and not to burden the fate of future generations with unsustainable consumption and debt.

The association points out that the appetite he achieved to awaken various investors at the international level The placement of public debt instruments remained in the shadow of the Government’s inaction in matters that require urgent attention.

They were also overshadowed by the impact on interest payments due to the significant growth of public debt in the last five years.

For APEDE, it is also worrying that this situation is happening at a time when interest rates
are on the rise and where the refinancing of the public debt would further affect the limited capacity of the state to continue with the execution of works on public infrastructure and investments in education and health that benefit the population in general.

The Ministry of Economy and Finance was authorized to issue “global bonds” from Republic of Panama for the amount of 3.5 billion dollars on the international capital market to cover the budget for 2024.

The authorization was given by Government Regulation no. 11 of February 8, 2024 and was published in the Official Gazette no. 29974 on Thursday, February 22.