Business chamber asks Finance Minister to explain Fitch downgrading

Panama’s Chamber of Commerce, Industries and Agriculture (Cciap) asked the Minister of Economy and Finance, Héctor Alexander, on Thursday,  to provide the country with a clear and realistic explanation about the change in outlook from stable to negative by the credit rating agency. Fitch Ratings.

The business union also asked Alexander for an action plan that reflects strong financial policies to reverse the current situation.

“This change from perspective to negative is a direct product of growing indebtedness to cover a large payroll and the financial reality of decreasing income that does not cover expenses,” said Adolfo Fábrega, president of the Cciap in a statement distributed Thursday.

Fábrega indicated that added to the payroll there is a high budget for the next period that clearly reflects electoral purposes.

“The current administration has the duty to redirect its financial actions in the months ahead,” said the business leader.

The statement recalled that the rating agency’s report questions the fiscal deficit and the “accounting maneuvers” to reduce it in the last year.

“In a country where there is a balance of powers, the National Assembly would have already summoned the Minister of Economy and Finance to explain the case, since it is owed to the citizens. Something so delicate cannot go unnoticed. We hope that the Legislative Body acts accordingly,” Fábrega said.

According to Fábrega, from “the outside they send us a message to put the house in order, and from this union we reiterate our rejection of any contracting of debt intended for operating expenses.”