Panama gets thumbs up from Morgan Chase

THE ECONOMIC consequences for Panama  due to the Mossack Fonseca Panama Papers fall out  won’t be so severe according to a JPMorgan Chase emerging-market analyst,   and the  bank  has improved its recommendation on the country’s  debt. 

The Panamanian economy will be the fastest growing in Latin America this year, with a growth that will be around 6 percent, according to estimates from the International Monetary Fund.

The government has announced it will repurchase up to $300 million of bonds maturing in 2018. The date of the buyback is July 26 and the settlement date is July 29.

Investors can cash out now or wait until 2018. The reason for the decision is to reduce the payment of bonds that mature in 2018, at which time the government will owe $993 million.

The government would rather re-finance the debt now when conditions are favorable. Financier Alvaro Naranjo said this type of operation is usual by governments. He said that given the low rates that exist in the market, it is the right time to issue bonds.