Capital Markets and Emerging Markets Policy

Panama Institutionalizes Sovereign Investor Relations Program

September 15, 2011

Panama is one of the most stable credits among Latin American sovereigns. Despite the relatively slow global recovery, the Panamanian economy continues to perform strongly, driven by private and public consumption and strong investment. Panama’s sovereign credit rating was elevated to investment grade in 2010. Positive rating actions and removal of the OECD Grey List reaffirm the Republic’s commitment to sound economic management while further consolidates Panama as a major financial center. Building on these achievements, the authorities launched an Investor Relations Program (IRP) in 2011 under the Public Credit Directorate of Panama’s Ministry of Economy and Finance (MEF) to deepen communication and develop relations with the investor community.

The establishment of the IRP is an appropriate next step given Panama’s strong economic position and activity in the market, as regular dialogue with market participants reaps essential dividends by strengthening debt management practices, enabling the authorities to gauge market perceptions more effectively. This transparent platform moreover complements the benefits of Panama’s access to foreign capital markets and its openness to international trade and capital flows. Integrated within the Public Credit Directorate website, the IR section provides the appropriate platform to publish relevant economic data, share fiscal results with the public, and promote sovereign investment opportunities within the Panamanian capital market.

In the first half of 2011, Panama launched its quarterly conference call series hosted by the top MEF´s officials. The IRP team, in collaboration with other government agencies, held non-deal roadshows in Madrid, Sao Paolo, and Toronto. The proactive IR work program for the rest of the year includes a series of global investment forums in Asia, Europe, and North America[1].

[1] Recent and upcoming IRP activities are available at the IRP website.