With austerity measures Panama seeks to contain public spending

The Paameño president, Laurentino Cortizo, plans to implement his administration’s decision to freeze the price of gasoline and diesel for private vehicles and cargo transport for three months, starting tomorrow, Friday, in an attempt to curb the demonstrations that began more than a week ago.

The announcement was made earlier in the week.

What are the measures?

The Ministerial Council ordered the institutions to start a process of reducing the state payroll by 10%, which has been growing steadily in recent years.

Start of a voluntary retirement program for public servants, and the suspension of salary increases, with exceptions, according to an official statement released Tuesday night.

The measures, which would be in force for an unspecified time, also include a ban on travel except in the case of a formal representation of the country or as a member of an international organization.

The cabinet of ministers, headed by Cortizo, also approved price controls for 10 products, including macaroni, lentils and vegetable oil, which will be in force until December 2022.

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