OPINION: Mortgaging Panama’s future

 
670Views 2Comments Posted 07/08/2019

In the current five-year period, of the administration of President Laurentino Cortizo, almost 11 billion dollars of Panamanian public debt are due. That is equivalent to 40% of the public debt of the State. These obligations will have to be renewed or refinanced in some way in the coming years. Ideally, the new government should continue with its "austerity with efficiency" policy, and begin to reduce the weight of public debt in relation to our economy and the government's fiscal revenues. In past administrations, new debt was contracted very lightly. It was used to pay cost overruns and fancy projects. They used accounting tricks to remove from the official account financial commitments of state-owned companies and the illusion remains that the actuarial deficit of the Social Security Fund is not part of the debt. The distant future to which all debts could be sent, without affecting the present, has ceased to exist. We Panamanians have great economic and social challenges that must be resolved with the resources we have, without continuing to mortgage future generations. Today we still have time to control our debt, and put our house in order.- LA PRENSA, Aug 7

 



Comments 2

user
Cicero3

Looking at the long list of Nito's campaign promises, there's no way he can fulfill them without going deeper into debt. Besides, as President Trump demonstrates, adding a $triliion a year to the national debt doesn't matter, at least not to his party.

10 days ago
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George Klk

Panama | Mortgaging into debt with more enticements...local and foreign influence: Panama should demand an international debt specialist (Czar), here's why. 1. A financial [Czar] is needed for oversight to implement a credit / debit strategy. 2. A czar can implement oversight strategy for the National Assembly and their expense forms. 3. A czar can limit foreign influence should be an exclusive priority agenda. 4. Panama N.A. will need to cooperate with an international expert [Czar] and open the...books! 5. Panama Czar specializing as an international financial consultant for debt management is in order. 6. Panama N.A. corruption cannot be trusted to continue in their traditional ways. 7. Panama N.A. will continue to suffer the disreputable effects as the state debt increases. 8. Panama N.A. has been targeted for incompetence and illegal theft by numerous members. 9. Panama N.A. as a whole in the recent past is exceptionally complicit, allowed and knew the crimes. 10. Panama N.A. has not made it mandatory to resolve the corrupt economic financial issues. 11. Panama national debt will eventually force the government into Socialism with China providing an easy solution with wealth opportunities to political leaders...corruption. 12. Panama N.A. / International debt specialist (Czar) can set the domestic / foreign policy rules to best apply the strategic benefits to maximize efficient management of public state funds to control and pay debt.

2 weeks ago
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