For II. loans in the amount of 75 million dollars were approved for the ITSE phase

He Ministry of Economy and Finance and Andean Development Corporation (CAF) will sign a $75 million loan agreement for partial financing “Implementation of the project of the Specialized Higher Technical Institute – ITSE, Phase II”.

The Andean Development Corporation through note OPAN-0262022 on February 7, 2022, the Ministry of Economy and Finance reported on the approval of a new request for financing the continuation of the second phase of the aforementioned project and the initiation of the process of evaluation, coordination and implementation of the aforementioned project.

This is the second loan that complies with the request for financial resources by the Ministry of Economy and Finance through note DdFP/NRVl 159 of September 29, 2016 for the financing of the Project High Technical Institute of Eastern Panamaup to the amount of 150 million dollars, which fulfilled I. and II. project phase.

He Government Regulation published in the Official Gazette Among the objectives of this loan is the provision to the Panamanian population of appropriate facilities and equipment for the training of technicians in higher education, in accordance with the needs of the various sectors of the economy that make up the national labor market.

“With this second operation, the ultimate goal is to support Specialized higher technical institute in full development of the academic, institutional and management dimensions; procurement of furniture and equipment; and carrying out complementary operations on the infrastructure that will enable the completion of the implementation started in the first phase”, he explained.

The loan agreement sets the 6-month SOFR reference rate, which is paid semi-annually, plus a margin of 2.0%.

During the first eight (8) years from the effective date, the CAF will finance eighty-five (85) points of the base interest rate on a non-refundable basis.

It is contracted for a period of 20 years, with amortization of thirty (30) half-yearly installments, consecutive and preferably equal, to which will be added interest accrued at the end of each Interest Period.

The first of repayment installmentsThe second amortization installment will be paid sixty-six (66) months from the effective date of the Agreement, on the Interest Payment Date corresponding to seventy-two (72) months from the effective date of the Agreement, and so on until the completed number of installments.

The loan agreement also stipulates a commitment fee of up to 0.35% per annum on the outstanding loan amount and a one-time financing fee of up to 0.85% on the loan amount.