• Sat. Apr 10th, 2021

Panama Contracts Financing For $ 950 Million To Support 2020 Budget

ByMichael Grey

Dec 26, 2020
support the 2020 Budget

The Cabinet Council authorized the contracting of three budget support financing with multilateral banks and commercial banks, which were managed through the Ministry of Economy and Finance (MEF).

According to the MEF, these financings are part of the actions outlined in the Financial Strategy that has been developed during the year 2020, given the fall in the current income of the State caused by the coronavirus pandemic (COVID-19).

He added that they will be used for payments of operations and investments such as: Accounts to suppliers, payment of expenses resulting from the pandemic caused by COVID-19, subsidy programs, conditional cash transfer programs, transfers to public universities, among others.

The first is a budget support loan with the World Bank for an amount of $ 300 million in initiatives that the National Government has taken in social matters.

The second is a budget support loan with the Inter-American Development Bank (IDB) for an amount of $ 200 million based on initiatives that the State has developed in the energy, water and sanitation sectors.

And the last of the financings approved for budget support is a loan approved with the Banistmo and Scotiabank banks for an amount of $ 400 million to pay the balance used in the existing facility with the National Bank of Panama (BNP).

Another of the approved financing is an Investment loan with the Andean Development Corporation (CAF) for an amount of $ 50 million that aims to comply with the Comprehensive Transformation and Improvement Plan of the National Institute of Professional Education and Training for Human Development (Inadeh), which will be disbursed according to the progress of its execution year by year.

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