finance

Fiscal fallout unlikely

The country’s financial authorities have downgraded the potential affects to the domestic economy posed by the calamitous fiscal situation in the United States.

Only 0.3 percent of the assets at the Fondo Fiduciario para el Desarrollo (FFD) “could be affected by the events of the recent financial crisis in the United States,” according to a statement released yesterday by the Ministerio de Economía y Finanzas (MEF).

Since the fund’s current investment portfolio totals $1.1 billion, MEF experts estimate that only around $3.5 million is at risk.

MEF sources indicate that Goldman Sachs, Morgan Stanley and Blackrock are handling $187.7 million in investments for the FFD. That figure is less than the amount recorded in the FFD’s last financial statement audit of March 2007, which reported $190.1 million.

Monday, the Autoridad del Canal de Panamá (ACP) confirmed that it had funds managed by Wachovia, a bank which was purchased by Citigroup, but denied that they were at risk, since Citigroup bank deposits are guaranteed.

ACP official José Barrios Ng said that the costs of financing of the expansion should not be affected by the U.S. financial collapse, because the Canal has a triple-A investment grade bond rating and their financing plan has the backing of several multilateral banks and development organizations.

Officials with the Banco Nacional de Panamá (BNP) weren’t available to discuss the risk posed to its investments.