Panama to Strengthen Its Health System with IDB Support

WASHINGTON — The Board of Executive Directors of the Inter-American Development Bank (IDB) has approved up to $40 million in financing to enhance Panama’s health system and expand health coverage.

The program will improve access to quality healthcare services, better protect the population from the financial burden of healthcare, increase the efficiency of Panama’s health system, and expand coverage in rural and Indigenous areas.

The initiative will benefit people throughout the country by supporting national reforms to integrate the health services of the Ministry of Health with those of the Social Security Fund and improve pharmaceutical management. It will also bolster the Strategy to Broaden Coverage (Estrategia de Extensión de Cobertura), using mobile and community-based teams to bring health services to Indigenous and rural communities. The project aims to reach 514,000 people in 24 priority districts where 60% of the population is Indigenous. Additionally, at least 1.58 million people will benefit from measures to strengthen priority healthcare pathways and enhance medication management. The program also plans to progressively incorporate digital tools and build six resilient health centers.

The operation is part of the IDB’s effort to upgrade and integrate Panama’s health system, and it aligns with the Strategic Agreement Between Panama and the IDB Group Country Strategy 2025–2029.

This financing is the first individual operation of a Conditional Credit Line for Investment Projects for up to $120 million, designed to support structural reforms to Panama’s health system over the next 12 years. The local counterpart will contribute an additional $10 million to the operation, bringing the total financing to $50 million.