Police in Panama City used tear-gas and fired shotguns in the air when protesters tried to break through the gates of the National Assembly building.

At least three people were injured and twelve arrested during the demonstration which was called by more than forty trade union, religious and student organizations.

They were protesting at plans by the Panamanian government to privatise the state water company.

Students later set fire to tyres and rubbish in the streets near the main university campus, which was sealed off by riot police.