Panama places $2,575 million in bonds to face the impact of the coronavirus crisis

Hector Alexander, Minister of Economy and Finance of Panama.
Editorial Dept. Voz de la Diaspora

The Panamanian government placed $2,575 million in debt bonds to meet budgetary responsibilities, and the impact of the coronavirus health crisis, with a new voucher and two reopens, reported by the Ministry of Economy and Finance.

Minister Héctor Alexander said that the decision to go to market is part of a financial strategy designed to face situations related to public finances, as well as the impact of the COVID-19 pandemic, and the slowdown of the economy with the consequent increase in unemployment and informality.

“Part of these funds will be used to buy back local bonds that mature in the 2021 Y 2022 respectively and thus obtain more favorable rates ", stated Alexander.

The operation carried out on Tuesday included the issuance of a new bond for $1,250 million maturing in 2032 at a yield of 2.252%, According to the official statement.

In the same transaction, the government reopened the bond for $1,000 million maturing in 2060 at a rate of 3.28%, and the local note by $325 million due in 2026 at a yield of 2.77%, he added

“The ultimate goal of these efforts is to manage the health crisis, social and financial in the most efficient and effective way possible ", added Minister Alexander.

Panama registered until 22 of September 107,284 cumulative cases of coronavirus infections, of which 2,285 they are deceased, according to the Ministry of Health, what confirmed 83,318 clinical recovered.