National debt passes $14 billion as economy booms
Panamana’s government debt now exceeds $14 billion for the first time in history says the Ministry of Finance and Economy,(MEF)
According to the latest report of the Ministry’s Directorate of Public Credit to July 31, 2012 public sector commitments to July 31 this year totaled $14,159, 900 000.
On average, the country’s debt has risen by more than $1.1 billion each year since the present government took office. That comes out at about $3 million a day, but it has been offset by a booming economy.
The current debt balance of the country is close to what the Ministry had planned for 2013 and well above what was expected.
Despite the increase in debt in absolute terms, its relation to the gross domestic product has fallen by the growth of the economy, which has repeatedly earned Panama an improvement in its risk rating in recent years.
The MEF has also argued that the deficit and debt levels are lower in Panama than in other countries with the same level of qualification.
In the more than $14 billion of debt does not include "turnkey" projects signed by the current administration, with payments be extended until 2018.
Projects such as road realignment in the capital city and hospitals, among others, are funded by the entities that run them and are not counted in the debt. $3,42. billion comes under that umbrella
