Gray Lists, Fiscal Weaknesses and Political Uncertainty: Martinelli’s Legacy and Varela’s Challenges

PANAMA - Report 25 Aug 2014 by Marco Fernandez and Guillermo Chapman

Executive Summary

Panama will be on the list of non-compliant countries of three different agencies before the end of the year: GAFI, OCDE and IOSCO. The economic and financial impact of being on these lists is important for reputational reasons and for the possible negative effect on external financing of local activity. As recently stated by an analyst from a top rating agency, being on a gray list and maintaining investment grade are not compatible. Authorized representatives from the Varela administration have recently indicated that they are committed to adopting several m...

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