Sovereign Fund to be Created , Panama’s Main Task for 2012

The fund, which will receive the additional revenue generated by the Panama Canal when the new locks come into operation, will be the Government’s main task next year.

Monday, December 19, 2011

The Minister of Economy and Finance in Panama, Frank De Lima, in a meeting with the press, said that the priority for his department will be to create a draft bill to be debated in the political and social arena before being sent to the National Assembly.

"He said that the Sovereign Fund is not designed to pay debts, but rather to be a store of savings for development and other objectives that appear in the draft and will be discussed widely both within and outside of the legislative chamber and party caucuses.

We believe that the Sovereign Fund is going to launch Panama into a new category which will give it a better international position in the conceptualization of country-risk", reported Prensa Latina.

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More on this topic

YES to Panama Savings Fund

May 2012

The Panamanian Chamber of Commerce supports the creation of a sovereign fund and recommends separate discussion of matters relating to limiting the fiscal deficit.

A statement from the Chamber of Commerce, Industries and Agriculture in Panama (CCIAP) reads:

The Chamber of Commerce, Industries and Agriculture of Panama, agrees with the establishment of a Savings Fund for Panama and recommends that the National Assembly have a separate debate over matters relating to the amendment to limit the fiscal deficit, which was incorporated into the bill creating the Fund.

Sovereign Fund Approved in Panama

April 2012

The Fondo de Ahorro de Panamá (Panama Savings Fund) aims to be a mechanism for economic stabilization and savings for natural disasters or economic crises.

"The Cabinet has approved a bill proposing the creation of a sovereign fund called the ‘Fondo de Ahorro de Panamá ‘(FAP), which according to a statement from the presidency will have two parallel objectives: National savings for future generations and economic stabilization in case of predetermined situations such as natural disasters or economic crises," reported Capital.com.pa.

Panama's Sovereign Fund

February 2012

According to government projections, Panama's future sovereign fund will have $12.5 billion in assets by 2025.

This fund will be used to combat natural disasters or adverse economic circumstances.

"Every year, of the contributions generated by the Canal to the State, a portion will go to the National Treasury - the equivalent of 3% of gross domestic product (GDP) - and anything in excess of that amount will be saved" in the sovereign fund, explained Prensa.com.

Panama to Implement "Sovereign Fund"

August 2011

The fund will collect the additional revenue generated by the Panama Canal when the new locks come into operation.

Alberto Vallarino, Minister of Economy and Finance, explained that it will function as a stabilization fund, ensuring that budgets are balanced and without deficit, adding that its management will be totally independent from the government.

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