Billions in Bank Loans Buy Panama Time as Doubts Mount

Traders are questioning how much further a double-digit rally in Panama bonds can go this year, concerned that President Jose Raul Mulino’s borrowing binge will backfire sooner or later.

The nation’s debt has returned more than 11% in 2025 as Panama refrained from selling new bonds, bucking the increase in issuance in other emerging markets. Instead, the government has authorized a $6 billion loan program to fund the budget.