Sovereign green bonds

It is called green bonds when the issuer is a State; additionally, it provides guarantees and future flows of State order to meet such obligation.

In recent years this type of debt instruments have been issued by the private sector. However, the Colombian government does so against its sovereign commitments, thus equating the issuance with its public debt.

The drive to reduce the carbon footprint and return some of its origin to the environment should be considered as State policies; in the case of Colombia, they have been assumed.

So Panama should take it into account, given its biodiversity that demands it. They become that alternative to finance projects that become a reality. It will not be a problem if they are financed from the budget. In addition there are long terms that allow to continue maintaining good practices in the reduction of pollution and preservation of the environment. Not to mention the number of jobs that could be generated during and after the projects are completed.

Projects to highlight: Sovereign green bonds

With the placement of this type of issues, projects can be launched for specific purposes such as those detailed below: