The High Cost of Debt

In the first semester of this year, the Panamanian government paid $30 million more in interest payments on the public debt than the amount paid in the same period last year.

Thursday, August 9, 2018

According to official figures between the first six months of 2018 and the same period in 2017, the costs of the debt increased by 6%, rising from $537 million to $567 million. 

In line with the behavior of costs, during the first half of the year the country's public debt grew by 3.6%, rising from $23.384 billion in January to $24.233 billion at the end of June.

Projections of government revenues to meet their obligations depend on the performance of the economy, in this regard Olmedo Estrada, president of the College of Economists of Panama, told Prensa.com that " ... in a more deteriorated economic environment, revenues can decrease putting more pressure on public accounts to cope with the expenses generated by the debt."

In relation to the options to reduce the costs of the debt, Estrada explained that " ... the strategy should be different. 'The alternative is to put the breaks on the debt. The government has to make an effort to save money by eliminating unproductive activities.'"

See details of the debt figures.

More on this topic

Public Debt Up 4% as of June 2018

July 2018

During the first six months of this year Panama's public debt grew by 3.6% in six months, rising from $23.384 billion in January to $24.233 billion at the end of June.

According to figures from the Ministry of Economy and Finance of Panama, in the first semester of the year, external debt has also reported an increase, rising from $18.371 million registered at the beginning of January to $19.603 billion registered at the end of June, registering an increase of 7% 

Panamanian Public Debt Continues to Increase

June 2018

Between May 2017 and the same month in 2018, the country's public debt rose from $22.96 billion to $24.849 billion, which is equivalent to an increase of 8%.

According to figures from the Ministry of Economy and Finance of Panama, in the first five months of the year, the debt has also reported an increase, rising from $23.373 billion registered at the beginning of January to $24.849 billion calculated at the end of May, which represents a 6% increase.

Public Debt Starts the Year on the Rise

June 2018

Explained by obligations with national creditors, between December 2017 and March 2018, the debt increased from $6.487 billion to $6.727 billion, registering an increase of 3.7%.

The Central Bank of Nicaragua reported that as of March 2018 " ...

Panama: Public Debt Grows 13%

May 2018

Between the months of April 2017 and 2018, the country's public debt rose from $21.922 million to $24.8 million, which is equivalent to an increase of 13%.

According to figures from the Ministry of Economy and Finance in Panama, in the first four months of the year, debt has also reported an increase, rising from $23.373 billion recorded at the beginning of January to $24.8 billion computed at the end of April, which represents a 6% increase.

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