Financial crisis arrives

PANAMA. The financial crisis that is currently affecting the United States and the strong dependency that many countries in the region have with that nation, is beginning to negatively influence the economies in Latin America.

Panama has become another victim of the crisis and there has been a marked slowdown in the growth of certain sectors like construction.

The Martin Torrijos administration in an effort to stifle the threat of recession launched a series of initiatives such a the Financial Stimulus Program that is going to inject $840 million into the local economy.

Whjile many business leaders are worried about the upcoming crisis, they are prepared to face the problem with optimism.

Members of the banking sectors are deeply analyzing the problem and are expecting that the guarantees that the Financial Stimulus Program is offering can be preserved.

The newly appointed civil servants of the new government are determined to find a way out of the approaching economic storm and are willing to implement those incentives in the sectors which will provide the most benefit,

The National Bank of Panama will put the first $400 million at the disposal of the financial system at an interest rate of 5 percent for long term loans.