Panama will closely monitor the effects of the Silicon Valley bankruptcy

Panama will be attentive and closely monitor the possible effects of the bankruptcy of the American bank Silicon Valley Bank (SVB), said Minister of Economy and Finance Héctor Alexander.

“We will follow (this situation with SVB) quite carefully, and as I said, it’s a developing story, so we’ve been watching it,” the head of Panama’s Ministry of Economy and Finance said at a press conference ahead of the annual meeting of the Inter-American Development Bank (IDB).

Minister Alexander was accompanied by IDB President Ilan Goldfajn, who for his part admitted that this issue will likely be discussed at the annual assembly of the organization, which is being held this weekend in the capital of Panama.

“I can’t tell you what the governors are going to talk about, but I’m sure they’re going to talk about the situation, including the latter,” Goldfine said.

In the assembly, Goldajn added, “we have a session where macroeconomic issues are discussed and they concern everything, with growth, social issues, but also with inflation, with the price of money and what will happen, with the risks that exist” .

Meanwhile, Panamanian Bank Governor Amauri Castillo said there are no direct effects in this country from what is happening in the United States financial system, noting that Panamanian industry is healthy and strong.

“Generally speaking, we don’t see a direct emergence, maybe some indirect, because of some kind of headline exposure that they might have from Silicon Valley in Panama,” Castillo said.

“However, we are watching closely what is happening, given that what is happening in the US financial system today creates a risk to confidence in the global financial system,” he said.