For the business sector, the issuance of $2 billion in bonds by the government is positive, since “it allowed the country to quote, for the first time in history, a bond for more than 20 years with an interest rate below 4%.

On July 17, the Panamanian government was able to issue bonds for $1.25 billion with a 3.160% interest rate and maturity in 10 years (2030), and others for $750 million with a 3.870% rate and maturity in 40 years (2060).

This issuance was made during the first days of Cortizo’s administration, who assumed in a context of economic slowdown in Panama, since in 2018 the country’s Gross Domestic Product reported a 3.7% year-on-year growth, far from the increases of 11.3% and 9.8%, reported in 2011 and 2012, respectively.

From the CCIAP statement:

The Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) welcomes the response of the international market to the issuance of sovereign bonds for the historic sum of US$2 billion, which were oversubscribed in a proportion of five times the amount to issue. In addition, this issue has a very competitive interest rate.

For the guild it is positive that the strong demand for the bonds issued allowed Panama for the first time in history to quote a bond for more than 20 years with an interest rate below 4.0%.

Read full statement (In Spanish).