Panama gets $500 million loan from the IDB
Tuesday, July 14, 2009 12:39
Panama gets $500 million loan from the IDB
The Inter American Development Bank (IDB) has approved a $500 million loan for Panama’s banking system. This loan will be channeled through the National Bank of Panama, and is part of a $6 billion program created by the IDB.
In addition to the favorable rate, the loan has a three year grace period and expires in 5 years. The rate is calculated at a spread of 4% points over the 6-month London interbank offered rate. According to the IDB the funds are expected to partially offset a shortfall in the dollar denominated lending to the productive sector, which has been adversely affected by the current global crisis.
The IDB went further to note that Panama’s growth rate is above the regional average which puts the country in good standing with lenders like the IDB. Panama experienced a growth rate of 8,8% from 2004 to 2008, compared to the regional average of 5,5% over the same time period.
Liked this post? Subscribe to my RSS feed and get loads more!
