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.
Journalist Edith Castillo Duarte wrote in a Prensa.com article: "ABP (Panamanian Banking Association) seeks conditions that are more flexible and consistent with our reality in order to maximize these resources and [Cohen] recommended for the new government’s team not to commit to using the funds from the Inter-American Development Bank (IDB) because they would have a very high cost for the country under the conditions that these funds have been presented to us.”
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.
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."
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