*Panama’s economy and finance ministry (MEF) has announced that the country’s risk premium, as measured by the yield that investors demand to buy the country’s debt, has fallen nearly 40% to just 200 basis points, down from over 330, its lowest level in over two years. MEF highlights that this means that the country can finance its projects at a lower cost, meaning “
more investment possibilities in public works and services for the population”. According to MEF, this drop reflects the fact that “
foreign investors recognise the government’s efforts at putting public finances in order, protecting the economy, and strengthening business confidence”. This comes as the right-of-centre government led by President
José Raúl Mulino has recently highlighted developments such as the European Union (EU)’s decision to
remove Panama from its list of countries with strategic deficiencies in their anti-money laundering (AML) and counter-terrorist financing (CFT) frameworks, announced last month.
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