It seems Panama does not have a problem in borrowing capital these days. I only hope that she has the ability to pay it back without saddling its inhabitants with a heavy tax burden. If that can be avoided it will be a first in the history of world governance. As the article points out, Panama external debt currently stands at over $11 billion. With an annual budget approved this month of about $11 billion and a GDP of about $20 billion, Panama has an extremely high debt ratio before additional borrowings.
Machine translated from La Estrallia
MANUEL LUNA G.
mluna@laestrella.com.pa mluna@laestrella.com.pa
The agreement was approved yesterday by the National Economic Council (CENA) and must be ratified by the Cabinet Council.
The MEF's budget director, Omar Castillo, said the proceeds will be used for investment programs and social projects, but added that "this does not mean they will use everything in this moment."
CAF already disbursed $ 54 million was allocated to the Secretariat of the metro.
Castillo said the financial institution is interested in funding regional mega projects listed on the agenda of the current administration. In July last year, Panama became a full member of this body, which is headquartered in Caracas, Venezuela, and is composed of 17 countries in Latin America, the Caribbean and Europe.
Panama's foreign debt last September to amounted to 11,079.84 billion, of which $ 442 million owed to CAF. At yesterday's meeting, also attended by Ministers of social area, who presented a report on grant programs and agreed to conduct a review to determine whether justified or not to continue with them.
Also approved a credit of $ 2 million for Senacyt to meet commitments to scholarship, authorized the National Bank to acquire General Bank branch in Brisas del Golf and terminated the contract with the homebuilders Euro, which would make the extension work National Assembly for $ 2.6 million.
