Loan agreements for millionaires approved by the Government

She approved a two million dollar loan and a conditional credit line of more than $200 million Cabinet Council, one of them, with the purpose of partially supporting the general state budget for the 2024 fiscal period and other fiscal periods.

On this way, Cabinet Council through Cabinet Decree no. 6 (as of Tuesday, January 16, 2024) authorized Ministry of Economy and Finance (MEF) lsigning the loan agreement with Andean Development Corporation (CAF) for $200 million based Support program for the national energy and ecological transition policywith the purpose of partial support The general state budget for the fiscal period 2024 and other tax periods.

The goal of this program is to provide financial assistance General state budget through surgery Free availability and fast payment, in recognition of Panama’s efforts to develop and implement public policies and initiatives that enable the country to move toward a just energy transition that promotes growth in a sustainable manner and in turn becomes a more resilient country to the impacts of climate change, the document details.

The above contract has a 6-month reference SORF rate payable semi-annually, plus an applicable margin of 2.00%, the loan will have a term of 15 years with a grace period of 24 months, will have a 6-month application period for the first payment and 24 months for the rest of the payments.

Amortization of the loan will be carried out through 27 consecutive half-yearly installments, to which will be added interest calculated at the end of each interest period.

Through Cabinet Regulation no. 7 authorized MEF to sign the loan agreement with the company International Bank for Reconstruction and Development for the amount of 40 million dollars to finance the so-called “Consolidation of Panama’s Public Finance Management Information System.”

The latter aims to improve the operational efficiency and quality of information on public finance management in the Republic of Panama, by strengthening the management and operational analysis capabilities of the Integrated Public Finance Management System.

This loan has a term of 18 years with a repayment deadline of December 15, 2028.

Likewise, the Government approved the signing of the so-called loan agreement “Program to promote research and innovation for productivity” up to the amount of 25 million dollars, which will be held between the Republic of Panama, which it represents Ministry of Economy and Financeand Inter-American Development Bank (IDB); and the framework of the Agreement for the establishment of a conditional credit line for an investment project – (CCLIP) of the Research, Innovation, Entrepreneurship and Human Capital Support Programfor the amount of up to 60 million dollars.

This is in response to a resource request from National Secretariat for Science, Technology and Innovation (SENACYT), by note N-SNAC-DS-2023-110 of February 6, 2023, for an amount of up to sixty million dollars, with the purpose of support partially Research capacity strengthening program in the frame National Strategic Plan for Science, Technology and Innovation (PENCYT)the document explains.

The document published in the Official Gazette establishes that the Executive Body, through UPCG, will include in the general state budget of each fiscal period the items necessary to cover the payment of principal, interest and commissions from the loan agreement.

He Cabinet Council also approved changes to the agreement, agreement or loan agreement or any document arising therefrom, subscribed by the MEF and approved by the Comptroller General of the Republic, moving from the LIBOR rate to the current reference market rate.