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

Panama: Financial Stimulus program will require collateral

Banks participating in the program won't benefit from lower rates nor more flexible conditions than those provided by their correspondent banks.

Monday, February 9, 2009

©image: Ken Mayer

Diego Quijano, in an article published in Prensa.com, writes: "This is because the cost of the funds won't be subsidized and collateral will be required, for the program to be 'sustainable'".

The program is a "mechanism to stimulate credit in the economy, of voluntary, non compulsory use for interested banks" indicated Felipe Chapman, partner at consulting firm Indesa, during a presentation to clients on the probable repercussions of the PEF (Programa Estímulo Financiero - Financial Stimulus Program)".

Source: Prensa.com

Key entities

Superintendency of Banks of Panama Felipe Chapman Ministry of Economy and Finance Banco Nacional de Panamá

Insight

financial crisis banking system Banks economic crisis Banking Central Banking

$500 Million Already Available for Panamanian Banks

April 2009

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

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.

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."

Panamanian banks waiting for financial aid

January 2009

The Government has still not defined the mechanisms for banks to access the $1.1 billion from the Financial Stimulus Program (PEF).

Edith Castillo in an article on prensa.com writes: "Things are not that simple, there are many operational details that have to be established for the use of these funds and they are only just working on a draft," said a bank source who participated in the meetings in which the Government and banks tried to agree to the terms and conditions of the program."

Panama: Financial Stimulus Program Beginning to be Used

June 2009

Three financial companies have requested a total of $100 million from the Financial Stimulus Program, which up to now had not been utilized.

The three banks that requested funds from the Financial Stimulus Program (PEF), as confirmed by the executive of the National Bank of Panama, Darío Berbey, are firms with foreign and Panamanian capital. Due to issues of confidentiality, their names were not revealed.

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