Press Release

The National Government Strengthens Panama’s Sovereign Wealth Fund Through Exchange of Promissory Notes for Tradable Sovereign Bonds

Panama | August 27, 2025

  • The Cabinet Council authorized the Ministry of Economy and Finance (“MEF”) to exchange the promissory notes delivered to the Fondo de Ahorro de Panamá (“FAP” or “Fund”) in 2024 for negotiable sovereign bonds (the “Bonds”) issued by the Panamanian government.

  • This exchange marks a significant milestone: the Bonds will now be fully integrated into the Fund’s portfolio, strengthening its balance sheet and consolidating its role as Panama’s sovereign savings mechanism.

  • The operation contributes to reducing Panama’s net public debt.

  • FAP’s assets are reinforced as a long-term investment vehicle to address sovereign contingencies and promote intergenerational savings.

The FAP announces that, following the Cabinet Council’s authorization through Decree No. 34-25 dated August 26, 2025, it will begin the process of exchanging the promissory notes received in June 2024 —representing pending and accumulated contributions from 2020–2023 totaling USD 1,272.4 million (access the press release June 2024 here)— for Panamanian sovereign bonds, fully tradable in the capital markets.

The promissory notes received in 2024 were recorded as contributions to the Fund’s net assets but, as non-tradable instruments, they could not be converted into liquidity if needed.

With this authorization and the execution of the exchange, FAP’s fiduciary assets will be significantly strengthened, enhancing its capacity to fulfill its dual mandate: serving as a stability mechanism against sovereign contingencies and as a long-term savings vehicle for current and future generations of Panamanians.

About the Fondo de Ahorro de Panama
The Fund was created by Law 38 of June 5, 2012, whose main objectives are:

  1. Establish a long-term savings mechanism for the Panamanian State; and

  2. Establish a stabilization mechanism in case of a state of emergency (declared by the Cabinet’s Council) and economic slowdowns.

Contact: Administration, +507-394-5776/5706, administrador@fondoahorropanama.com
For additional information visit www.fondoahorropanama.com
 
 
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