Panama seeks to expand financing for MSMEs with support from the IDB

Micro, small and medium-sized enterprises (MSMEs) in Panama, mainly in the agricultural, commercial and services sectors, will be able to access to financing with the support of a new Guarantee Fund. This Fund is supported by the Inter-American Development Bank (IDB) with a loan for an amount of 150 million dollars, with a 15-year repayment period, 5-year grace period and an interest rate based on SOFR.

It is expected that 20% of the transaction’s proceeds will guarantee loans for climate adaptation and mitigation initiatives, meanwhile another 20% of the resources will finance women-owned or women-led companies.

Additionally, the Fund will provide financial advisory and education services to MSMEs on topics such as financial statements and technically robust business plans, among others.