Banking Banks banking system financial crisis economic crisis Banco Nacional de Panamá Central Banking Financial assistance Financial Stimulus Program Inter-American Development Bank bank Asociación Bancaria de Panamá CAF international loan Ministry of Economy and Finance

$500 Million Already Available for Panamanian Banks

The $500 million contributed by the IDB for the financial incentives program will be available beginning on May 10.

Thursday, April 30, 2009

©image: Andrew Magill

The National Bank of Panama will manage the $500 million available to Panamanian banks through loans with two-year terms and an interest rate of 4.50%, with interests for LIBOR services at 6 months.

The Prensa.com website published: "The PEF funds are destined for short term loans and for promoting investment, employment and stimulus of the Panamanian economy, looking to minimize the crisis."

Andean Development Corporation (CAF) will provide another $210 million to the PEF at an interest rate of 1.7%, and the Bank of Panama will provide $400 million at a rate of 3.5%.

Source: Prensa.com

Key entities

Inter-American Development Bank Marcelo Antinori CAF Banco Nacional de Panamá Financial Stimulus Program

Countries

Panama

Insight

international loan banking system financial crisis economic crisis Banks bank Financial assistance Central Banking Banking

Panama: Financial Stimulus Program is Ready

April 2009

The terms and conditions of the Financial Stimulus Program for banks to access the $1.11 billion are ready.

The banking industry has repeatedly indicated that for the program to be attractive, it should allow the use of funds without the submission of collateral. However, according to an article in Prensa.com, a government source said: "It is going to be difficult to omit this requirement [the filing of collateral] because the Government is responsible for the use of this money."

Panama: Terms for the Financial Stimulus Program Known

April 2009

The National Bank has announced the terms and conditions under which PEF loans can be accessed.

Bank Manager Juan De Dianous reported that the loans will be in terms of up to seven years and under the individual parameters of the three entities that have contributed funds.

Rejection of Stimulus Program Conditions

May 2009

Panamanian banks will not use Financial Stimulus Program funds due to their terms and conditions.

The Banking Association of Panama, through its president, Mosi Cohen, told the new government’s transition team that banks have not and will not use Financial Stimulus Program (PEF) funds unless there is a change in the terms and conditions.

Panama won't increase its IDB debt

June 2008

A spokesman for the International Development Bank (IDB), Marcelo Antinori, says Panama is unlikely to accept a 500-million-dollar line of credit.

The IDB is offering this line of credit to Latin American countries to mitigate the social and economic effects of the food crisis.

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