Refer to the prospectus of Panama’s November 2009 sovereign bond and the latest S&P report on Panama to answer the following questions.

a. What was the underwriting fee?

b. What were the proceeds used for?

c. Name the first two events of default identified in the prospectus.

d. Indentify the two risk factors in the prospectus that you feel are the most important to consider.

e. Name 2 credit strengths and 2 credit weaknesses identified by S&P.

f. Describe how favorable or unfavorable future projections look for the following statistics: i. Real GDP Growth ii. GDP per Capita iii. Debt to GDP iv. Current Account Balance v. Fiscal Balance vi. Inflation

g. What recently happened to the Panama Canal? How is it affecting growth and the economy of Panama?

h. Identify two other drivers of future economic growth in Panama.