Skip to main content
Panama receives IDB support to contain the sanitary crisis and its macroeconomic impact

The Inter-American Development Bank (IDB) has approved a $400 million operation to help finance Panama’s efforts to contain the sanitary crisis, mitigate its impact on vulnerable households, and promote policies to reduce the pandemic’s short-term effects on the economy.

The budget-support loan will provide Panama’s government with rapid disbursement funds to finance emergency current expenses and generate a mid-term fiscal policy strategic framework to recover fiscal sustainability and ensure macroeconomic stability.

The IDB support complements a financial program approved in April by the International Monetary Fund aimed at providing rapid financial assistance to help combat the COVID-19 crisis in the country.

Under the Bank’s program, Panama commits to implement measures to ensure a stable balance of payments and a sustainable public debt-to-GDP ratio, as well as to resume a gradual fiscal policy agenda to ensure fiscal sustainability in the post-emergency period.

The IDB loan, which will be disbursed in a single tranche, has a seven-year amortization period, a three-year period of grace, and an interest rate based on LIBOR.

About us

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public and private sector clients throughout the region.

Contacts

Nicaretta,Romina Tan

Nicaretta,Romina Tan

Setien Santianez,Loreto

Setien Santianez,Loreto
Jump back to top