VERACRUZ (Central American and Caribbean Games) - Not many people were talking up Panama's chances of winning a medal before the Central American and Caribbean Games but after two days of action in Mexico, the picture looks very different.

Led by veteran coach David Rosario, Panama have surprised the Dominican Republic and then hosts Mexico and now look very good bets to reach the podium.

Getting 24 points from Christopher Warren and 21 from Josimar Ayarza, the Panamanians fought back from an early deficit to shock the Dominicans, 93-87, on opening day.

On Tuesday, Panama won a tight encounter against Mexico, 79-73, a result that has punched their ticket to the Semi-Finals.

The clash was knotted at 56-56 heading into the last quarter but Panama made the big plays.

"We arrived here and were in a group (Group B) in which the the Dominican Republic and Mexico were favorites, we were third and Costa Rico fourth," Rosario said.

"Now the situation has changed and we have to take into account Panama. I believe this team is getting better as it plays games, and they have my confidence.

"They are enjoying the tournament but at the same time, they are playing with a lot of responsibility."

Trevor Gaskins had 17 points, Jaime Lloreda 16 with 12 rebounds, Ayarza 13 points and Danilo Pinnock 11 for the winners.

Lloreda and Jamal Levy, who had three points and three rebounds against Mexico, were members of the Panama side that finished runners-up at the same event back in 2006.

They also played for Panama when the country won the 2006 CentroBasket and also competed at the 2006 FIBA World Championship.

If Panama's upset of the Dominican Republic raised eyebrows, their victory over Mexico removed any doubts about the potential of the team in Veracruz.

As for the Mexicans and their new coach Bill Cartwright, a difficult clash with the Dominican Republic awaits with the winners to advance to the Semi-Finals.

Jose Gutierrez blamed a loss of concentration in the vital part of the game for the defeat to Panama.

"We're not afraid to say it," he said. "We have to win a medal, the gold is what we came for and that is the expectation."

Rosario, while thrilled with the play of his team so far, is not writing off Mexico's chances.

"Mexico have my respect," he said. "We know they have the personnel to recover well and keep improving."

The Dominican Republic players restored some of their self-belief with an 83-73 win over Costa Rica after getting 16 points and 10 rebounds from one of their FIBA Basketball World Cup players, Edward Santana.

Jose Luis Dominguez is coaching the Dominicans at the Games.

Thursday will see a battle in Group A between Puerto Rico and Cuba. The sides have defeated Jamaica in their only games so far.

FIBA