Panama $2 billion bond  issue oversubscribed in record time

A $2 billion Panama bond issue at a very low rate, was snapped up on Wednesday, July 17 with the bidders proposing to the Panamanian delegation that traveled to New York, $11,000 billion, 5.5 times more than what was required.

The country can now afford to pay to suppliers and unions of teachers and educators, as well as other sectors that have outstanding accounts, says the vice-minister of Economy, David Saied.

He added that in an unprecedented issue in the history of the Republic, the lowest rate of a 10-year bond and the lowest rate of a 40-year bond has been achieved, which constitutes a benefit for the state’s finances.

Saied said that with these resources, the new administration will be able to initiate the payment of the accounts owed to suppliers to reactivate the economy and employment, and also to do justice to thousands of people. The negotiated volume is 5.5 times more than what Panama needed.

The transaction demonstrates the confidence of international markets in the actions of the new administration, in terms of fiscal accounts, and will also allow dealing with pending accounts for payments to Panamanians who are owed wages, vacations and other accounts.