The loss of investment grade caught the government by surprise

The Deputy Minister of Economy and Finance, Carlos González, admitted this Monday that he did not expect Fitch Ratings to downgrade from BBB- to BB+ before the elections.

The surprise was greater because they were spoken to with a purpose they will be pronounced after the election.

“We did not expect a statement at this time, it is not the practice for rating agencies to issue an opinion before the election. It is not done before to avoid interfering with the results,” González told television media.

The deputy minister emphasized that after Fitch Rating reduced Panama’s debt to BB+, the country is entering an uncomfortable zoneHowever, technically speaking, the investment grade has not yet been lost.

“There are two rating agencies (Moody’s and Standard & Poor’s) that technically maintain our investment rating, technically we have not lost them. Their prudent action of waiting for the election is what is expected,” he added.

González also emphasized that Fitch rates the country, not just the government.

He reiterated that the Government does not share Fitch’s statement, but respects his decision, and it is a wake-up call for those who want to govern the country.

How will it affect?

The president of the National Council of Private Enterprise (Conep), Temístocles Rosas, warned that the loss of investment grade would affect the pockets of Panamanians.

In this sense, he announced that the ordinary Panamanian will receive a increase in the interest rate of banking products ask because the banks will have to ask for loans at a much higher price.

“There is a direct effect on the household of paying more for credit cards, cars, personal or mortgage loans, but we also have to understand that when a country does not have an investment grade, private and foreign investment is reduced,” he said. .