CABEI approves US$250 million in support for Panama in response to the pandemic and growth recovery
First non-founding partner country to receive resources from the Development Policy Operation (DPO) program, reaffirming CABEI's support to the Government of the Republic of Panama to increase actions in response to the Pandemic, including the protection of the most vulnerable population, and for growth recovery.
Tegucigalpa, November 13th, 2020.- The Central American Bank for Economic Integration (CABEI) approved US$250 million as part of the Development Policy Operations Program (DPO) to the Republic of Panama to financially support the country in facing the economic crisis generated by the negative effects of the COVID-19 pandemic and to support the country's economic recovery.
These fast-disbursing financial resources will help support the general state budget and are intended to support the protection of people's health, education and food security during the COVID-19 crisis, strengthen institutions to promote transparency and accountability, and foster a more inclusive and sustainable economic recovery.
The development policies supported by CABEI for this loan focus on three pillars:
- Pillar A: Protecting human capital during the COVID-19 crisis and strengthening institutions to foster human capital accumulation during recovery.
- Pillar B: Strengthening institutions to support a more transparent and fiscally sustainable economic recovery; and
- Pillar C: Strengthening institutions to support an inclusive and environmentally sustainable economic recovery.
"In general, the purpose of CABEI's Development Policy Operations Program (DPO) is to financially support its member countries to promote balanced economic growth, poverty reduction, sustainable development, and to combat climate change with policy actions and development results that are a priority for the country and that strengthen the maintenance of macroeconomic stability," noted CABEI's Executive President, Dr. Dante Mossi.
The terms of this financing will have a 20-year term including a 5-year grace period and a 2.74% indicative annual interest rate.
With this operation Panama becomes the first non-founding partner country to receive the maximum amount of US$250 million from CABEI´s Founding and Regional Non-Founding DPO Program.