The incoming Minister of Finance has announced that the tenders for the Chan II hydroelectric station and for Government City will be revised, as well as the policy for ethanol in gasoline.
In addition, adjustments will be made to the parity formula for calculating the price of fuel by eliminating barriers to imports of fuels and changes will be implemented in the modes and methods of payment in state projects.
The change of government in Panama will not involve changes in the macroeconomic management of the country leading to projections of strong and sustained growth in the coming years.
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The center-right Varela won the election where the differences between the candidates were not about political philosophies but management styles, for which reason it is estimated there will be no major changes in Panama.
Varela had been the ally who helped the current President Ricardo Martinelli win previous elections, but there was soon distance between them, with Varelas removal from the office of Ministers of Foreign Affairs, although he retained the formal title of Vice President won in those elections.
Fitch Ratings analysts said no matter who is chosen of the three candidates leading the polls, greater risks to the Panamanian economy are not expected.
From a statement by Fitch Ratings:
Although the polls suggest that any of the three leading candidates could become the next president of Panama in the elections of May 4, greater risks to the Panamanian economy are not expected, according to a new report from Fitch Ratings.
The three presidential candidates at the top of the polls say they will not propose tax reforms during their tenure.
Capital.com.pa reports that "The issue was discussed at the last forum organized by the Panamanian Association of Business Executives (APEDA), which evaluated the economic and fiscal impact of electoral promises."
Jose Domingo Arias (Democratic Change), Juan Carlos Navarro (Democratic Revolutionary Party), and Juan Carlos Varela (Panamanian Party) are the three candidates for the Presidency of Panama that have the highest chance of winning, according to polls. The three "... assure that they will not impose new taxes."
The advertising sector will have a field day with the subsidy the State will give to the parties for the election campaign.
For the elections of 2014, they will use "$125.5 million of state money for the organization of elections and subsidies to the parties", noted an article in Prensa.com.
For the organization, $55.7 million has been set aside, which represents an increase of 44% compared to the 2009 elections, while subsidies for political parties total $69.8 million.
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