The International Monetary Fund (IMF) approved Panama's request for emergency financial assistance under the Rapid Financing Facility (RFF) of approximately $515 million to meet urgent balance of payments needs arising from the outbreak of the covid-19 pandemic, the international body reported.

The document states that "... The IRF provides timely resources to the authorities needed to mobilize essential health and support expenditures related to covid-19 to vulnerable populations. The authorities also seek the support of other multilateral institutions."

The publication dated April 16 adds that "... To absorb the macroeconomic shock, the government of Panama appropriately requests to exceed the fiscal deficit limit under the Social and Fiscal Responsibility Law (with legal limits becoming binding again from 2021 onwards). The authorities announced a package of fiscal measures to increase health spending and increase transfers to the poor."

Panamanian companies and covid-19: How to face the new commercial reality?

We prepared for our clients the report "Information system: Covid-19 and Business Outlook" which helps companies to measure the impact that the crisis will have on their activity in the coming months and which are the opportunities that will arise in the context of the new commercial reality.

Click here to request access to this report.

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Panama: $250 Million to Face Economic Crisis

November 2020

In the context of the economic crisis generated by the covid-19 outbreak, the CABEI approved a line of credit that the Panamanian government will use to finance the general state budget and programs for health protection, education and food security.

The Central American Bank for Economic Integration (CABEI) approved $250 million as part of the Development Policy Operations Program (DPO) to the Republic of Panama to financially support the country's economic recovery, the financial agency reported.

Costa Rica: $300 Million More Debt to Face the Crisis

July 2020

The Central American Bank for Economic Integration approved a line of credit for the country to reinforce its fiscal sustainability and strengthen its macroeconomic stability, in the context of the economic crisis that arose from the outbreak of covid-19.

In this way, Costa Rica becomes the first nation to receive the maximum amount of $250 million per year available for each country under the Development Policy Operations Program (DPO), reported the international organization.

El Salvador to Issue $2 Billion in Debt

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In order to face the health crisis, the Assembly authorized the issuance of securities for up to $2 billion, which will be issued in the national or international market.

According to the motion, 70% of the funds obtained will be used, as a priority, to attend to the health emergency and may be allocated to the fund for direct monetary transfers to economically vulnerable households, to cover the income shortfalls in the current budget, generated by covid-19 and to incorporate the resources into the General State Budget 2020, informed the Legislative Assembly.

Costa Rica: $500 Million to Address Covid-19 Crisis

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The Costa Rican Assembly approved in second debate a credit with the Latin American Development Bank, which will be used to assist people who lose their jobs, as well as employers and independent workers.

The funds from the $500 million loan from the Andean Development Cooperation, which was originally planned to be used for debt repayment, will be used to finance the Costa Rican government's response to the national emergency caused by the Covid-19 virus, the Legislative Assembly reported.