Press Release

The Supervisory Commission of the Fondo de Ahorro de Panama issues its 2024 Fiscal Year Opinion Report

Panama | June 30, 2025

The Supervisory Commission (the “Commission”) of the Fondo de Ahorro de Panama (“FAP” or the “Fund”) issued its 2024 Opinion Report (the “Report”) on June 18, 2025. The Commission serves as the representative body of civil society within the Fund’s corporate governance structure.

In accordance with Law 38 of June 5, 2012, which created the FAP (the “FAP Law”), the Report is issued annually to evaluate the Fund and its management model, corporate governance, financial results, and key strategic goals (access the 2024 Opinion Report here, in Spanish only).

In the Report, the Commission stated that “FAP’s management has been distinguished by a prudent, long-term approach focused on capital preservation and the generation of sustainable value without incurring unnecessary risks, responding exclusively to sound economic and financial fundamentals, which has enabled it to effectively adapt to a dynamic global environment, recently marked by market volatility.”

The Commission further noted that the FAP “has integrated sustainability, ethics, and financial responsibility criteria into its investment process, thereby strengthening its commitment to modern, transparent management aligned with international best practices, in accordance with the objectives established by the FAP Law and the guidelines of the Ministry of Economy and Finance (“MEF”). We consider the 2024 management results to be exceptionally positive, with an annual return of 7.12%, equivalent to net earnings of 94.1 million balboas. This performance allowed the FAP to outperform its composite benchmark index by 134 basis points, based on the mandates defined by the MEF and entrusted to the FAP.”

In its Report, the Commission based its opinion on four (4) thematic pillars that summarize its observations and/or recommendations, which, while not exhaustive, are aimed at strengthening the Fund’s management.

  1.  New Capital Contributions to the FAP: The Commission acknowledges the National Government’s efforts in contributing B/.31.9 million in cash (2018–2019) and B/.1,272.4 million in 10-year promissory notes with a 7.45% interest rate (2020–2023). However, the Commission urges the MEF to explore mechanisms to monetize these promissory notes and/or identify new sources of capitalization—such as concession revenues, reverted assets, or dividends from joint ventures—that would help make effective the contributions represented by the promissory notes and strengthen the FAP’s equity, especially in light of the temporary suspension of contributions approved under Law 445 of 2024.

  2. Raising Awareness of the FAP’s Role and Importance: The Commission acknowledges the FAP’s efforts in dissemination and financial education but recommends expanding the scope of these initiatives to all levels of the education system and civil society at large. It also urges the Government to incorporate content related to the FAP, public savings, and fiscal sustainability into the National Financial Education Strategy, in order to foster citizen awareness of its intergenerational value.

  3. Legal and Asset Protection of the FAP: The Commission reiterates the need to strengthen the legal framework that protects the Fund’s assets, by evaluating options such as granting it legal personality or establishing constitutional or quasi-constitutional safeguards. It warns that the lack of specific legal mechanisms poses a structural risk, and therefore urges the MEF to prioritize such reforms as part of a commitment to the FAP’s stability.

  4. Strengthening the Investment Framework: The Commission recommends that the MEF consider increasing the investment limit in alternative assets from 15% to 20% of the total portfolio, in line with the formal proposal submitted by the FAP in 2021. This measure would enhance the efficiency and diversification of the portfolio by optimizing long-term value generation without compromising capital preservation.

Members of the Commission
The Commission is composed of representatives of the following organizations:

  • The Association of Certified Public Accountants of Panama;

  • The Association of Economists of Panama;

  • The Ecumenical Council of Panama;

  • The National Council of Organized Workers; and

  • The National Council of Private Enterprise.

 

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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