Global Bank Lending Facility

closed

The focus of the Loan is on supporting the housing and SME sectors in Panama. Support for these key sectors is well aligned with the Bank's developmental country strategy, targeting housing for the low and middle-income segments of the population and enhancing the competitiveness and efficient development of the private sector. Furthermore, the Loan will help GB expand its access to the international financial markets, diversify its funding sources, support its liquidity position, and reduce its asset liability gap. The potential participation of B lenders will channel financing from international commercial banks, thus, further diversifying GB's sources of funding. Finally, as current international markets negative conditions remain, the impact on Panama, given its ties with the US economy, could result in a further decline in the availability of funds to the Panamanian financial system. This makes IDB lending even more crucial as it contributes to counteract the potential financial distress caused by the international financial crisis, and in that way helps restore conditions for sustainable economic growth.