Panama Keeps 3.5% Deficit Cap After 7.7 Quake
Panama's finance ministry kept its 3.5% deficit cap after Friday's 7.7 quake and ruled out a waiver, saying insurance and grants will pay for relief first. The post Panama Keeps 3.5% Deficit Cap After 7.7 Quake appeared first on The Rio Times .
Panama has decided not to lift its 3.5% deficit cap to finance the damage caused by the 7.7 magnitude earthquake that struck the country on Friday 9 October. The Ministry of Economy and Finance (MEF) announced on Sunday 11 October that the 2026 fiscal target remains unchanged, and they will not seek a waiver from the National Assembly.
The country, which uses the US dollar and has a low investment-grade rating, plans to use insurance cover, donations, and grants first to cover relief costs. Borrowing will only be considered if "indispensable," and then on concessional terms. The MEF has authorized up to US$100 million for emergency purchases, but this is a ceiling, not an automatic outlay.
The organization will release funds only when there is proven need, through a trust at the state-owned Banco Nacional de Panamá.
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