USD 300 million credit line to boost Panama SMEs
The Framework Financing Convention between the two institutions intends to bolster Spanish companies—especially SMEs—operating in Latin America by managing funds through local banking.
Financing of investment projects, coverage of liquidity needs and support for medium- and long-term exports from Spanish companies to Latin American countries, are the main areas to be covered by a USD 300 million credit line provided by the Official Credit Institute (ICO) to CAF—development bank of Latin America—, presented on Monday in Panama City.
The presentation of the Framework Financing Convention between the two institutions was attended by the head of ICO, a public bank attached to Spain’s Ministry of Economy and Competitiveness, Pablo Zalba, CAF Director-Representative in Panama, Susana Pinilla, and Spain’s ambassador to Panama, Ramón Santos, who highlighted the objective of this line of credit: to promote trade and internationalization of Spanish companies in Latin America.
The senior officials explained the details of this financial operation to executives from the financial sector, Spanish and local companies and government authorities.
During the event, organized by ICEX España Exportación e Inversiones—a state-run entity—, ICO President Pablo Zalba reported that the agreement “is the first loan signed under the new ICO SME financing product with international banking as mediator.”
Also, CAF Director-Representative in Panama, Susana Pinilla, noted: “At CAF we want to facilitate and boost the historical trade between Spain and Latin America, through access to credit, including small and medium-sized enterprises as drivers of comprehensive and inclusive development. This line of credit was granted as part of the broadest cooperation arrangement between CAF and Spanish public and private institutions and companies.”
Loans formalized with Spanish companies for investment or liquidity shall be for a maximum amount of EUR 12.5 million, while those for export may total EUR 25 million or the equivalent in the corresponding currency. The repayment and grace periods will be agreed between the local financial institutions affiliated to CAF and the Spanish beneficiary companies.
The presentation was attended by the ambassador of the Kingdom of Spain to Panama, Ramón Santos, ICEX Chief Financial Counseling Officer Christian Garma, and CAF Director for Productive and Financial Sectors of the Northern Region, Mauricio Salazar.
CAF and ICO have collaborated since 1998, through different agreements aimed at enhancing business relations between Spain and Latin America to promote the internationalization of Spanish companies.
CAF's more recent content
CAF, ECLAC, IDB and PAHO Promote Sustainable Development in the G20
The Regional Organizations of the Americas congratulate Brazil on its successful G20 Presidency, highlighting its leadership on key issues such as poverty, governance, and climate change. They also reaffirm their commitment to actions that promote equity and development in the region.
Urgent Call for Action to Safeguard Caribbean SIDS at CAF Symposium
As the global community grapples with the escalating climate crisis, Caribbean Small Island Developing States (SIDS) are running out of time to secure critical investments and support needed to strengthen their economies and protect vulnerable communities from the intensifying impacts of climate change. With the window to take decisive action rapidly shrinking, CAF - Development Bank of Latin America and the Caribbean, in partnership with the Commonwealth Secretariat and the Antigua and Barbuda High Commission, brought together key stakeholders for a symposium in London to address the critical vulnerabilities Caribbean SIDS face.