Directorate of Public Financing

A) Functions of the Directorate of Public Financing

• Executive Decree No.356 (dated August 4th, 2015)

Whereby the Public Credit and International Technical Cooperation Directorates are merged, the Public Financing Directorate is created and the organizational structure of the Ministry of Economy and Finance is modified.

• Ministerial Resolution 180

Authorizing the Ministry of Economy and Finance, through the Directorate of Public Credit, to take measures relating to the management of debt service

B) Responsibilities of the Directorate of Public Credit

• Executive Decree No. 71 of June 24, 2002

By which is designated the Directorate of Public Credit Ministry of Economy and Finance as the administrative body responsible for preparing and executing securities issues securities, and other Executive disposiciones.Decreto No. 71 of June 24, 2002 are held

C) Reorganization of the Directorate of Public Credit

• Resolution No. 03 of January 16, 2013

which approves and adopts the Manual of Organization and Functioning of the Ministry of Economy and Finance.

• Executive Decree No. 70 of June 21, 2002

By which reorganizes the Directorate of Public Credit Ministry of Economy and Finance.

D) Definitions and general provisions relating to the system of Public Credit

• Law No.20 of May 7, 2002

Dictated measures for economic recovery and fiscal responsibility.

E) Creation of the Public Credit Directorate

• Decree No.58 of December 29, 1982, repealed by Article 22 of the Law No.97 of December 21, 1998

Crease within the Ministry of Planning and Economic Policy Directorate of Public Credit

• Law 68 of December 26, 2018

• That reforms Law 34 of 2008, on Fiscal Social Responsibility and dictates other provisions

• Law 102 of October 31, 2019

• That modifies an article of Law 34 of 2008, on Fiscal Social Responsibility.

• Executive Order 1068 of September 6, 2012

Which regulates Law 38 of June 5, 2012, which creates the Sovereign Wealth Fund of Panama and amends Law 34 of June 5, 2008, on Social Fiscal Responsibility

• Law 38 that created the Sovereign Wealth Fund of Panama

That creates the Sovereign Wealth Fund of Panama and amends Law 34 of 2008 on Social Fiscal Responsibility

• Law 72 which reform Fiscal Laws

Reforming Law 76 of 1976, Law 34 of 2008 and Law 62 of 2010 on fiscal measures

• Law 31 which amends the Fiscal Code and other fiscal measures adopted

Reforming the Tax Code and adopts other measures

• Social Fiscal Responsibility Law

This Law Act aims to establish norms, principles and methodologies to strengthen fiscal discipline in the public sector financial management, a necessary condition for stability and sustainable economic growth. Management of public finances will run under the principles of transparency, responsibility and accountability.

• Executive Decree No. 50 (of June 26, 2009)

Which regulates Law 34 of 2008 on Social Fiscal Responsibility, amended by Law 32 of June 26, 2009

• Law 32 of June 26th, 2009

That modifies articles of Law 34 of 2008, on Social Fiscal Responsibility, and sets out other provisions.

• Law 51 that temporarily suspends Title II dela Law 20 of 2002 on Fiscal Responsibility

Temporarily suspend the enforcement of Title II of Law 20 of 2002 on Fiscal Responsibility measures.

• Law 20 of 2002 on Social Fiscal Responsibility

Dictated measures for economic recovery and Fiscal Responsibility.

A) Auction Auction

• Auction Regulation

Whereby the placement of instruments Public Debt is regulated by public auction.

B) Treasury Notes

• Ministerial Resolution 2019 Treasury Note

• Cabinet Decree No. 07, February 24, 2015

• Ministerial Resolution No. 04, 2014-DdCP

• Cabinet Decree No. 04 del 14-January-2014

• Cabinet Decree No. 05 of January 18, 2011

Authorizing the issuance of state securities denominated Treasury notes and their placement in the local capital market

• Cabinet Decree No. 04 of January 26, 2010

• Cabinet Decree No. 10 of May 25, 2005

• Cabinet Decree No. 47 of December 17, 2003

• Cabinet Decree No. 09 of February 26, 2003

• Cabinet Decree No. 15 of June 19, 2002 and Cabinet Decree No. 17 of July 3, 2002

C) Treasure Bills

• Cabinet Decree No. 08 of March 10, 2015

• Cabinet Decree No. 04 of January 26, 2010

Cabinet Decree 4 of 26 January 2010: authorizing the issuance of government securities denominated Treasury notes and their placement in the local capital market, Cabinet Decree No. 8 of 18 April 2007 that authorizes the issuance of government securities denominated Treasury bills and other provisions.

• Cabinet Decree No. 08 of April 18, 2007

D) Treasury Bonds

• Cabinet Decree No. 40 of December 23, 2014

That allows one or several issues of Securities or Foreign Bonds of the Republic of Panama, in the amount of up to three billion dollars of the United States of America with 00/100 (USD 3,000,000,000.00) in the market international capital and / or servicing liability management dictate and other provisions.

• Cabinet Decree No. 30 of September 30, 2014

That modifies Cabinet Decree No. 4 of February 26, 2013, which authorizes of instruments of the State called Treasury Bonds and its placement in the local capital markets for an amount up to one thousand five hundred millions of dollars of United States of America with 0/100 (US$1,500,000.00), with the object of partially financing the need for resources of the State’s General Budget of the fiscal year 2013 and/or to perform liability management operations.

• Cabinet Decree No. 16 of June 14, 2012

Which amends Cabinet Decree No. 46 of December 28, 2011.

• Cabinet Decree No. 46 of December 28, 2011

Authorizing the issuance of government securities denominated Treasury bonds and their placement in the local capital market

E) Authorization of issuance of Samurai Bonds

• Cabinet Decree No. 2 of January 11, 2011

Authorizing the Republic of Panama to issue securities or Foreign Bonds of the Republic of Panama (the "Bonds Samurai") in the capital market of Japan through private placement procedure solely for qualified institutional investors; to register as an issuer of securities to the Japanese Securities Custody Center ("Japan Securities Depository Center, Incorporated" or "JASDEC"), and other provisions.

F) Detail of Current Bonds

*Note: The issue price of the bonds is indeed what the name implies; It is used as a source Bloomberg tool (DES function for each bonus). This information determines the YTM or actual cost of issuance.

E) Market Makers Program

• Resolution 006-2014

Whereby the Market Makers Program of Public Debt of the Republic of Panama is regulated from the force 2014."

• Resolution 16-2013

Designates participants Market Makers Program of Public Debt of the Republic of Panama for the fourth quarter of validity 2013

• Executive Decree No. 768

Promotes the Development of Market Makers Program of Public Debt of the Republic of Panama

• Regulation of Market Makers 2013

• Regulation of Market Makers for securities market Domestic Public Debt of the Republic of Panama This regulation is a legal instrument that aims to define the formation, objectives, development, application entities, appointment and ratification of the participants, benefits , commitments, rankings, effects of non-compliance, performance measures, among others. Therefore it is expected to be the rules and conditions, as well as the behavioral model of Market Makers Program.

• Code of conduct

The Code of Conduct for the Programme Market Makers aims to contribute to the development of the market of Public Debt and thus stimulate the expansion of Domestic Capital Market in the Republic of Panama, the Market Makers undertake to observe the following rules of Ethics and Conduct.