CAF provides support to Panama’s financial sector.

(Panama, October 11, 2012).- As part of CAF´s – (Development Bank of Latin America) ongoing efforts to strengthen Latin American financial systems, today the institution granted a credit line of USD 10 million dollars to Multibank, Inc.

Susana Pinilla, CAF´s director representative in Panama, and Milciades Denis, Vice President of Multibank’s Treasury and Investment Division, signed the agreement.

"CAF promotes the consolidation of financial systems with the goal that the sector will not only have access to the necessary resources to cover their clients' operations, but also to promote competitive financing and sustainable business development" stated Susana Pinilla at after the agreement was signed.

As a result of Panama's rapid economic growth and expansion strategy, Multibank reported a substantial increase in the characterizes of the loan portfolio and asset quality during 2011 and the first quarter of 2012, hence the importance of the credit line granted by CAF, given that it will facilitate their work.

For Multibank, this important credit facility contributes to the diversification of funding sources and strengthens the bank's liquidity position, in order to satisfy the credit needs of its customers with a presence in Panama and the rest of Latin America.

Multibank is a fundamental part of a sound financial group, a generator of opportunities for growth that offers innovative solutions and facilitates, with social and environmental responsibility, the comprehensive development of their clients.

CAF promotes access to financial services in favor of the development of the development of the region.

The Economy and Development Report (RED for its acronym in Spanish) released in 2011 by CAF, analyzes the situation in Latin America in terms of the development of financial markets. The report emphasizes access to financial services and the catalytic role it plays in economic development. Furthermore, the report also analyzes the results of a poll taken in 17 cities, which provides new insight on the use of financial services in different countries of the region.

The report underlines that in Latin America the volume of financial intermediation and access to financial services are falling behind compared to what would correspond for their level of economic development. The results of the poll conducted by CAF show that just over half of those polled in the region (51.3%) have a bank account. It is noteworthy that Panama has bank coverage above the average for Latin America and along with Chile shows total credit levels for the private sector, over 80% of GDP, close to the levels of developed countries and other Asian emerging economies including Korea (97%), Malaysia (110%) and Thailand (103%).