(Updates with additional information, context)
March 24 (Reuters) - Panama's economic recovery has been
"very strong," but the outlook remains uncertain as growth is
projected to slow to 5% this year, the International Monetary
Fund (IMF) said Friday.
Panama faces risks of new external shocks as well as
potential disruptions to copper mining after delays reaching a
renewed agreement with Minera Panama, the IMF said.
Canadian miner First Quantum owns a 90% interest in
the Cobre Panama mine through its unit Minera Panama.
Panama's inclusion on the Financial Action Task Force grey
list also poses risks.
It is imperative Panama exit the list - which includes
countries considered to have weak anti-money laundering
regulations - as soon as possible by addressing the remaining
deficiencies in its framework, the IMF said.
Panama should also reduce its fiscal deficit further to
ensure debt sustainability in the medium term, the fund added.
The country's banking system has capital adequacy and
liquidity indicators "well above regulatory minima," the IMF
said, and should continue on that trend "as Panama does not have
a lender of last resort and deposit insurance."
The IMF also recommended Panama focus on policies to
rebuild economic buffers and ensure income levels are more in
line with those in advanced countries.
(Reporting by Kylie Madry; Editing by Anthony Esposito and
Brendan O'Boyle)
