$1.1 billion for Panama banks

President Martin Torrijos announced that his government will create the fund to help local banks which are having problems accessing international markets for credit.

Thursday, January 22, 2009

Dialogociudadano.com reports: "Torrijos said in a discourse that the fund will be established with loans from the Andean Development Corporation (CAF) and the Inter-American Bank (IDB) as well as from the National Bank of Panama, in order to provide help to banks in the country with cash problems, in case it is needed.

"These resources (...) will be administered by the National Bank of Panama

More on this topic

$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: 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.

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: Financial Stimulus program will require collateral

February 2009

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

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'".

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