The stand-in for banned ex-President Ricardo Martinelli has promised to boost the economy.
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The protege of an ex-head of state convicted for corruption leads the race, with seven others vying for the position.
Decision removes uncertainty over Mulino’s eligibility just two days before the vote in the Central American country.
Eight hopefuls are seeking to succeed President Laurentino Cortizo in Sunday’s election, with corruption a top issue.