With no printing press available Panama must borrow to fund its deficit. As this article points out, the deficit could grow to twice this amount with the latest flood damage in the country. Although this amount is a rather small percentage of the GDP, it still is a lot of money and is nearly the amount of net revenue generated by the canal.
Machine translated from La Prensa
$ 600 million in Treasury Notes
Roberto González Jiménez
roberto.gonzalez @ prensa.com
The Government yesterday received authorization from the National Economic Council (dinner) to issue Treasury notes in 2011 up to $ 600 million. The bonds will be used to meet debt maturities and to finance part of the Central Government's deficit, said Alberto Vallarino, Minister of Economy and Finance.
The planned deficit for 2011 in the State Budget is $ 436 million, 1.5% of nominal gross domestic product.
However, following the declaration of national emergency following the flooding, the Government could double the deficit.
Internationally, the highlight of 2011 will be issuing $ 500 million in bonds on the Japanese market.
In 2010, the balance of the debt of the state closed at $ 11, 585,000,000, $ 613 million more than the end of 2009.
They also approved a credit line of $ 500 million with Banco Nacional de Panama.
The minister explained that this is a line that usually hires to meet the expenses in the first half of the year and closes at the end of the year when the state receives as much income.
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