Felipe Chapman - Ministry Of Economy And Finance (MEF)

The market reacted to the appointment of Felipe Chapman to the Ministry of Economy and Finance (MEF).
Bloomberg
reported that Panamanian sovereign bonds registered increases this Wednesday, May 15, above most of their emerging market peers, after President-elect José Raúl Mulino appointed the economist in charge of directing the country's economic policy, which includes debt management.
Chapman has the track record, knowledge and ability to take the reins of the ministry. He is a highly respected person in the sector who is very clear about the country's economy.
Risk rating agencies, multilaterals, investors and businessmen know their trajectory, and that is why the markets have reacted positively to the bonds.

The price of bonds is inversely proportional to the yield, if prices go up, rates go down.
If rates go down, the cost of financing for the country decreases. This is reflected equally in the cost of financing for banks and finally for consumers.
Bonds due in 2057, for example, rose 1.6 percentage points to 104.4, according to Bloomberg's compilation. The appointment of Felipe Chapman, as Minister of Economy and Finance, is positive, since he comes from the business sector and is expected to support market-friendly initiatives,” William Snead, an analyst at BBVA in New York, told Bloomberg.
However, the analyst also recognized that the Mulino administration, which was elected with 34.2% of the votes, will have significant challenges given the fragmentation of the National Assembly, which complicates the approval of laws, including those of macroeconomic cut.

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