After Progress in Talks Between the Government and First Quantum Minerals Panamanian Bonds Rebound
1894 Panama Canal Bonds that were Issued in Panama are pictured below.
Panama’s sovereign bonds recovered ground in international markets after President José Raúl Mulino confirmed progress in talks with First Quantum Minerals, owner of the Cobre Panamá mine in Donoso Colón, according to Bloomberg. Panamanian dollar bonds maturing in 2057 rose more than one cent per dollar, reaching 117.4 cents, reflecting greater confidence in the international market.
Financial analysts believe this rebound is beginning to ease the perception of country risk and could allow the government to access external financing on better terms. Furthermore, it strengthens Panama’s image as a stable and reliable economy within the region, in contrast to the fiscal and political tensions faced by other Latin American countries. However, investors caution that optimism should be tempered, as the true impact will depend on whether the talks with First Quantum Minerals result in a lasting agreement.
