Panama purchasing the northern and southern corridors

Social Security Fund Will Invest Reserves in Purchase of Northern and Southern Corridors

Tuesday, June 22 2010 @ 03:16 PM EDT
Contributed by: Don Winner
Views: 22
The Social Security Fund of Panama will invest $250 million dollars in bonds to finance the purchase of the Northern and Southern Corridors, announced today the Director General of the Social Security Fund, Guillermo Sáez Llorens. The official made the announcement after meeting yesterday with President Ricardo Martinelli, who confirmed that the State will purchase the highways. Saez Llorens said this will be the best way to invest the Social Security Fund’s money, because it will yield between 3.5% to 4% more in interest than the money is currently earning in a deposit account. Saez Llorens made the remarks while inspecting the hospital in Changuinola, Bocas del Toro province. (TVN Noticias)
Editor’s Comment: Panama’s Social Security Fund is “liquid” in that it has more money in the bank than it pays out – they are in the black. The government of Ricardo Martinelli wants to “buy” both the Northern and Southern Corridors that were built on contract by two different companies, who continue to operate the toll roads and to collect the income. Martinelli has determined that this is simply a bad business deal for Panama, and over the long haul it would be much better to just buy out the two companies and to send them packing. The Social Security Fund has money in the bank and this idea of using that money to invest in the roads had been bouncing around for months. Today, it’s a done deal. Of course the normal crowd of ankle biters will scream and yell and moan and bitch about how they think it’s a bad idea, and everyone will just basically ignore them. In the long term the Social Security Fund will have even more money in the bank than it has now thanks to the interest payments received on the bonds, so it’s a good deal in that regard. Hopefully Panama has learned its lesson and they won’t ever pull a repeat of the mistakes made in building these two roads. Have you ever driven in to Panama City from the area of Tocumen on the Southern Corridor in the morning during rush hour? It’s literally paying money to sit in a traffic jam – not good.

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