US$210 million for National Bank of Panama

(Medellin, March 28, 2009).- At the Annual Meeting of the Inter-American Development Bank (IDB) held in Medellin, Colombia, CAF President & CEO Enrique Garcia, the manager of the National Bank of Panama, Juan De Dianus Jehan, and the Panamanian minister of Economy, Hector Alexander, signed a US$210-million line of credit for medium-term loans.

This loan is part of the Corporation’s action program to respond to the current international financial situation, with the objective of strengthening the liquidity of the Panamanian banking system, in the framework of the Financial Stimulus Program (PEF) which that country is implementing.

"The signing today and CAF’s increasing presence in Panama confirms the Latin American dimension of the Corporation which I head," Garcia said. "This operation is in line with our objective of facilitating the process of access to capital, which contributes to dealing with the challenges of the current crisis."

The CEO added that it was important for development organizations to actively accompany their partner countries, as part of their strategy for tackling the world financial crisis. "We believe this is an important opportunity for all organizations committed to development like us to assume an important anti-cyclical role."

"The idea is to stimulate progress with measures that help us not only to survive the storm with the lowest social and economic cost for our population, but to project the reforms needed so that Latin America has in the future a more sustainable and – above all – better quality growth, which is not only economically efficient but also creates productive employment, which is inclusive and respects cultural diversity and the environment," Garcia said.

Since its entry as shareholder in 1997, Panama has maintained close relations with the Corporation which have generated approvals for US$820 million, mainly for the infrastructure sector, along with a series of non-reimbursable funds granted to various environmental and competitiveness programs.

The National Bank of Panama is the official financial entity of the country, created in 1904 as commercial, government and development bank. Its mission is to serve the financial needs of the State and provide the financing needed for national economic development in the commercial, industrial, agricultural, livestock, fisheries, construction and personal consumption sectors.

The Bank is also treasurer and fiscal agent of the central government, payments intermediary and tax collector. It controls and regulates the bank clearing system and has supplied, collected and distributed US dollar bills since 1979.