Credibility: The government’s key to recovering investment quality

The government that comes to manage destinies Panama Starting Monday, July 1, it must be one that has credibility, in order to regain the investment grade that has been lost.

Likewise, it must be able to apply a firm fiscal policy, with transparency, that promotes the rule of law, as Francisco Ameglio, entrepreneur and vice president, said Party realization of goals (RM).

Ameglio added that it must be a Government capable of promoting investments in key sectors of the country’s economy, diversifying it and attracting foreign investment to the national territory.

“Open the door so that the economy can start and private companies can grow again. Immediately after the election, the first thing we will do is sit down with the business associations, work together on this goal and create jobs”he emphasized.

Another person who reacted to the loss of the investment rating is the former president of the Republic and entrepreneur, Ricardo Martinelliwho stated that during his reign it took them a long time to get this positive rating.

“It took us a lot of time and effort in our administration to achieve investment grade. Now the loss means billions of dollars for the state and citizens to pay in higher interest.”assured the former ruler.

Namely, Martinelli commented that considering what happened, it cannot be said that nothing happened, since no one is held responsible and prosecuted for less.‘

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In May, general elections will be held throughout the national territory.

“There must be a special commission that will answer and punish those responsible, whoever is from the 3 organs of the state and whoever is from the full force of the law”He said.

Martinelli expressed that it is not just about unbridled spending, but about the lack of law and due process.

“From 2009 to 2014, we were a happy country, but we didn’t know it. We only saw and understood it because of the torture that followed and continues, but soon we will return to what we were before,” former governor Martinelli claimed in his account X.

for his part, Olmedo Estrada, former president of the National College of Economists, He stated that this is a downgrading of Panama by one of the rating agencies, which means that we as a country are left out of what would be an investment grade.

He indicated that he should wait for the statement of the other two most important rating agencies, which will happen at any moment, since risk rate of the country is given through a complete examination of the finances, the economic situation, the risks of the country due to certain conditions that exist.

He expressed that if this assessment has already been done by one of the evaluatorsso we have to wait for the declaration of the others.

“Although the other two rating agencies have not expressed themselves, in general there is always a congruence in the ratings of these agencies and they probably give us the same rating”explained Estrada.

He says this because there is a coincidence in some very important indicators that are taken into account, such as Public debt, increase in public spending and fiscal deficit are other elements that are classified as this risk.

He University professor He said that another element that is taken into account is the economic perspective of the country, since it is known that Panama will reduce its economic growth this year, for already known reasons.

Estrada noted that the decline in Panama’s public revenues, which could not cover spending, has increased in recent years, with what is known as a fiscal deficit, the same situation that happened in the country with the increase in subsidies, which were not corrected.