Advanced Search

LatinNews Daily - 25 May 2021

Click here for printer friendly version
Click here for full report

In brief: IDB approves new loan for Panama

* The Inter-American Development Bank (IDB) has approved a US$150m loan to support the sustainability of Panama’s micro-, small- and medium-sized enterprises (MSMEs) amid the coronavirus (Covid-19) pandemic and promote employment by providing access to financing. According to the IDB this operation “is part of IDB’s efforts to uphold Panama’s productive fabric” with a total US$300m in funding, of which an initial tranche of US$150m was approved in June 2020. According to the IDB the assistance will provide MSMEs with access to mid-term financing to help Panama restore its productive capacity and implement production restructuring measures to deal with the impacts of the pandemic. According to the IDB there are an estimated 200,000 MSMEs in Panama, representing 96.3% of all enterprises and accounting for 49% of formal employment. The IDB cites 2016 figures which show that MSMEs generate US$6.5bn in revenues, of which 41.6% is provided by small enterprises, 40.9% by mid-sized enterprises, and 17.5% by microenterprises.