Panama’s Deficit Cap Too Tight for Varela After Election

Panama’s President Juan Carlos Varela said he’ll ask Congress for authorization to raise the budget deficit limit after the previous government boosted spending ahead of elections earlier this year.

Varela, who took office July 1, said he’ll send a proposal to Congress within a month to increase the budget deficit limit to 3.7 percent of gross domestic product from 2.7 percent. The announcement by Varela comes a week after the Central American nation sold $1.25 billion in 10-year bonds.