Panama Secures €2.9bn Early Debt Refinancing, Adds €500m Budget Funding

Panama's Ministry of Economy and Finance carried out an early debt‑refinancing operation in the international markets, restructuring two sovereign euro‑denominated loans totalling €2.4 billion that were originally due in 2027. The transaction, coordinated with Santander and Merrill Lynch‑Bank of America, extends the debt profile to 2031 and locks in fixed‑rate coupons of 4.83 % and 4.67 %, cheaper than the market average of 5.44 %, yielding a direct saving for the treasury.

The maneuver also provides an additional €500 million of fresh financing under the same terms to cover Panama's 2026 fiscal budget. By converting variable‑rate exposure to fixed rates, the plan shields the budget from possible European Central Bank rate spikes and replaces a single large bullet payment in 2027 with semi‑annual amortisation starting in 2028, easing liquidity pressures. The operation is part of the 2025‑2029 medium‑term debt‑management strategy and is expected to improve debt‑service indicators and the country's risk‑profile rating.