Chapman Says They Are Reviewing a 5000 Page Audit and Environmental Commitments Regarding the Copper Mine

Panama City: Upon his arrival at the National Assembly, the Minister of Economy and Finance, Felipe Chapman, was asked about the mining issue and assured that the Executive Committee, made up of the Ministers of Environment, Commerce and Industries and himself, is conducting a thorough analysis of the audit report , which exceeds 5,000 pages and covers environmental, fiscal, labor and governance aspects.

“We are studying with due responsibility in order to form a properly informed and responsible opinion on the situation of the mine,” he said. 

He assured that the Government’s main objective is to guarantee the protection of the environment and that the mine has the technical capacity and resources necessary to carry out a future closure. 

“Our purpose is to protect the environment and ensure that the mine has the resources and technical capacity to achieve an environmentally sustainable closure,” emphasized the head of the MEF.

Expectations are rising regarding the future of the mining project ahead of the president’s speech this Wednesday at the National Assembly, where various sectors expect the president to address the Executive’s position on this issue.

Debt

On the other hand, he indicated that Panama’s public debt will continue to increase, although he assured that its growth will be increasingly smaller as part of the Government’s strategy to gradually reduce the fiscal deficit without resorting to adjustment measures that affect the population.  The head of the Ministry of Economy and Finance (MEF) explained that halting the growth of debt immediately would have had significant social consequences, including the dismissal of thousands of public servants and the elimination of subsidies for electricity, fuel, gas tanks, and even public transportation.  Chapman indicated that, from a human perspective, the Government chose to progressively reduce the rate of debt growth by decreasing the fiscal deficit.

“What we’re doing is slowing down the rate of debt growth. How do we achieve that? By reducing the fiscal deficit, and we’ve been gradually reducing it,” he said.

According to the minister, the fiscal deficit fell from nearly 7% to 3.4% in a single year, and the goal for this year is to reduce it even further, with the aim of achieving fiscal balance by the end of the decade.  Furthermore, he assured that the Government aims for the country to register a positive primary balance this year, meaning that income will be sufficient to cover expenses before debt interest payments.

“Imagine, for 15 years or more, almost 20 years, this country was taking on debt to pay interest. That’s not sustainable,” he said.

On another topic, Chapman reported that the draft General State Budget for the 2027 fiscal year is in its final stage of preparation.  He explained that the National Budget Directorate will present a proposal to the Ministry of Economy and Finance in the coming days, which will be evaluated before being sent to the President of the Republic and subsequently to the Cabinet Council.  Once it obtains the approval of the Executive, the project will be presented to the National Assembly to begin its legislative process in the Budget Committee and, subsequently, in the plenary session.

Government admits that public debt will continue to rise, albeit at a slower pace.