At the request of the Superintendency of Banks of Panama (SBP), and with the support of the International Monetary Fund’s (IMF’s) Western Hemisphere Department (WHD), a monetary and financial statistics (MFS) remote technical assistance (TA) mission from the IMF’s Statistics Department (STA) took place during June 22-July 10, 2020. The main objective of the mission was to assist the SBP in the compilation of new standard report forms for depository corporations (SRF 1SR and SRF 2SR) on the basis of internationally accepted standards, as set out in the IMF’s 2016 Monetary and Financial Statistics Manual and Compilation Guide (MFSMCG), following the introduction of a new chart of accounts by the SBP, and to agree on an improved timeline to report monetary and financial statistics to STA, on a monthly basis. The work of the mission was facilitated by the excellent collaboration of the staff of the Financial Studies Directorate (FSD) of the SBP. The officials met during the mission are listed in Appendix I.
Carlos Caceres, Diego A. Cerdeiro, Dan Pan, and Suchanan Tambunlertchai
This paper analyzes a group of 755 firms, with aggregate indebtedness of US$6.2 trillion, to assess the solvency risks and liquidity needs facing the U.S. corporate sector based on projections of net income, availability and cost of funding, and debt servicing flows under different stress test scenarios. The paper finds that leveraged corporates account for most of the potential losses arising from the macroeconomic stresses associated with the COVID-19 crisis, with a concentration of these losses in the oil and gas, auto, and capital and durable goods manufacturing sectors. However, potential losses from corporate debt write-downs appear to be a fraction of banks’ capital buffers and, given the size of the leveraged segment and the relatively long duration of that sector’s debt, the near-term liquidity needs of these corporates appear modest. Corporate stresses could, however, amplify the current economic downturn—as firms cut investment spending and reduce employment—potentially giving rise to significant indirect losses for the financial system.