The report from this investment entity indicates that the position of Panamanian debt is solid compared to other countries and points out that the country will seek to maintain a good relationship with the United States.

The year 2025 began with geopolitical tensions in the Donald Trump government against several countries. Panama did not escape this controversy, with the Panama Canal as the focus of attention due to the threats of the American president, who has expressed his intention to take control of the interoceanic route, alleging an alleged influence of China in its operations.

Investment banks analyze how this situation impacts the behavior of Panamanian debt and the perception of the market and investors about the country.

UBS Financial Services Inc., an investment bank based in Zurich, Switzerland, conducted an analysis of the situation in Panama in light of Trump’s statements.

In the report, published this month, the bank notes that, despite this situation, the country remains reliable for investors who own sovereign bonds.

The document breaks down Trump’s allegations against Panama and clarifies each comment.

First, the bank notes that the US president mentioned that US ships would be charged higher rates. However, the report mentions that there is no evidence to support this claim. “The data do not indicate that the United States is being affected by higher toll rates. In fact, the cost of transit has increased for all users in recent years due to the increase in global transportation costs and adverse weather conditions,” the bank emphasizes.

The report also recalls that, between 2023 and part of 2024, the reduction in the water supply in the Canal affected the number of daily transits.

The year 2025 began with geopolitical tensions in the Donald Trump government against several countries. Panama did not escape this controversy, with the Panama Canal in the spotlight due to threats from the US president, who has expressed his intention to take control of the interoceanic route, alleging an alleged influence from China in its operations.

Investment banks are analyzing how this situation impacts the behavior of Panamanian debt and the perception of the market and investors about the country.

UBS Financial Services Inc., an investment bank based in Zurich, Switzerland, conducted an analysis of the situation in Panama in light of Trump’s statements.

In the report, published this month, the bank notes that, despite this situation, the country remains reliable for investors who own sovereign bonds.

The document breaks down Trump’s allegations against Panama and clarifies each comment.

First, the bank notes that the US president mentioned that US ships would be charged higher rates. However, the report mentions that there is no evidence to support this claim.

“The data do not indicate that the United States is being affected by higher toll rates. In fact, the cost of transit has increased for all users in recent years due to the increase in global transportation costs and adverse weather conditions,” the bank emphasizes.

The report also recalls that, between 2023 and part of 2024, the reduction in the water supply in the Canal affected the number of daily transits.

China’s influence in the management of the Canal?

Regarding the alleged influence of China in the management of the Canal, UBS quotes Secretary of State Marco Rubio, who stated:

“A foreign power today has, through its companies (which we know are not independent), the ability to turn the Canal into a choke point in a time of conflict.”

On this subject, the Swiss bank’s analysis clarifies that Rubio’s statements are related to Panamanian ports, in particular those managed by Hutchinson Port Holdings, a Hong Kong-based company that has management rights over the ports of Balboa (Pacific) and Cristobal (Atlantic).

“These ports are facilities where cargo is handled, but they do not control access to the Canal,” emphasizes the report addressed to investors to clarify the Trump administration’s controversy with Panama.

UBS refers to the audit carried out by the Comptroller General of Panama of the company Panama Ports Company, a subsidiary of Hutchinson Port Holdings, to determine whether all concession agreements and financial reports are being carried out in accordance with the law.

The report also recalls that, between 2023 and part of 2024, the reduction in the water supply in the Canal affected the number of daily transits.

The year 2025 began with geopolitical tensions in the Donald Trump government against several countries. Panama did not escape this controversy, with the Panama Canal as the focus of attention due to the threats of the US president, who has expressed his intention to take control of the interoceanic route, alleging an alleged influence of China in its operations.

Investment banks analyze how this situation impacts the behavior of Panamanian debt and the perception of the market and investors about the country.
UBS Financial Services Inc., an investment bank based in Zurich, Switzerland, conducted an analysis of the situation in Panama in light of Trump’s statements.
In the report, published this month, the bank notes that, despite this situation, the country remains reliable for investors who own sovereign bonds.

The document breaks down Trump’s allegations against Panama and clarifies each comment.
First, the bank notes that the US president mentioned that US ships would be charged higher rates. However, the report mentions that there is no evidence to support this claim.
“The data do not indicate that the United States is being affected by higher toll rates. In fact, the cost of transit has increased for all users in recent years due to the increase in global transportation costs and adverse weather conditions,” the bank emphasizes.
The report also recalls that, between 2023 and part of 2024, the reduction in the water supply in the Canal affected the number of daily transits.

China’s influence on Canal management?

Regarding China’s alleged influence on Canal management, UBS quotes Secretary of State Marco Rubio, who stated:
“A foreign power today has, through its companies (which we know are not independent), the ability to turn the Canal into a choke point in a time of conflict.”

On this subject, the Swiss bank’s analysis clarifies that Rubio’s statements are related to Panamanian ports, in particular those managed by Hutchinson Port Holdings, a Hong Kong-based company that has management rights over the ports of Balboa (Pacific) and Cristobal (Atlantic).
“These ports are facilities where cargo is handled, but they do not control access to the Canal,” emphasizes the report addressed to investors to clarify the Trump administration’s controversy with Panama.

UBS refers to the audit being carried out by the Comptroller General of Panama on the company Panama Ports Company, a subsidiary of Hutchinson Port Holdings, to determine whether all concession agreements and financial reports are being carried out in accordance with the law.
The report also notes that Panama has historically been a key ally of the United States. In addition, it highlights that the decision of the government of José Raúl Mulino to withdraw from China’s Belt and Road Initiative, along with its commitment to controlling migration in the region, should calm US concerns and reduce tensions in the coming months.
“Given that the Trump administration has other more pressing geopolitical challenges, it is likely that conflicts over the Canal will be resolved diplomatically,” the bank concludes.

UBS also mentions that Panama bonds have spreads that are 125 basis points wider than those of BBB-rated countries, and 50 basis points wider than sovereign debt of BB-rated countries.
It also notes that yields on Panamanian two- and ten-year bonds range between 5.75% and 7.50%, higher than those of countries with similar ratings.
“Therefore, despite geopolitical tensions, Panama continues to offer attractive opportunities for investors.”