BRIEFS: Economy

Canal expansion financing not a problem

LA PRENSA

not alarmed: The expansion of the Panama Canal is not expected to be impacted by the global economic crisis.1098594

Funding for the expansion of the Panama Canal is not in danger despite the lack of liquidity in international markets.

This is the opinion of Bolsa de Valores de Panamá Manager Roberto Brenes.

While the lenders for the expansion have not yet been named, Brenes said that a financing structure has been discussed with multilateral banks and institutions that do have liquidity.

“These processes may be further extended, but I do not think the money for the expansion is at risk,” he said.

He said that the timeframe for the project's financing can be extended, which would increase the cost of the project, but it would give the Autoridad del Canal de Panama more flexibility in repaying the loan. This would help the canal deal with a slowdown in international trade, which would have an impact on tolls.

“If oil prices remain high, the authority may have to increase the rate of tolls to offset the reduction in transit,” Brenes said. “But if the cost of a barrel of crude oil continues to fall, this possibility is more remote.”

In any case, Brenes said that this scenario is not expected to come to fruition in the near future and that, “the Canal has substantial savings” to deal with adverse situations.