Conep calls for coherent policies in public finance

Unfavorable socioeconomic and fiscal panorama for the country visualizes National Council of Private Enterprise (Conep) with the loss of the investment grade by the risk assessment agency Fitch Ratings.

Business people believe that this qualification will affect the attraction effort Foreign investment and the country’s access to international financing, with a forecast increase in the cost of public debt.

Other consequences of the loss of investment grade could affect SMEs, in addition to Interest rates could increase on different types of loans and in the worst case, inflation and unemployment would increase.

“Conep has repeatedly raised concerns with the authorities about the fiscal deficit, low revenues, management and significant increase in public debt to cover operational costs and the sudden closure of mines, a situation that together worsened macrofiscal situation in the country“, said the business union.

Considering the proximity of the change of Government, Conep asked the presidential candidates and those aspiring to other elective positions to commit to contributing to the implementation firm state policies and coherent in matters of public finance.

This includes maintaining fiscal discipline, curbing public spending and concrete measures to strengthen transparency and management.

“This will be the only way to transfer to international markets a strong message that Panama is still an attractive country for investments”, according to businessmen.

Conep advocates for real coordination between State and private business for creating investment projects in different modalities.

The loss of investment grade by Fitch Ratings on March 28, given concerns about fiscal sustainability, political stability and the Government’s ability to implement structural reforms.