The Ministry of Economy and Finance (MEF) of Panama has approved a loan contract of one billion two hundred million euros with Merrill Lynch International, a subsidiary of Bank of America. This financing in dollars will be used to partially cover the seasonal liquidity needs of the General State Budget for fiscal year 2025 and the coming years, thus ensuring the continuity of critical projects and fundamental services for the country.
The agreement, which has a maturity period of 2 years, offers a competitive annual interest rate for Panama, based on the six-month EURIBOR plus an additional margin, resulting in a total rate of 4.46%. This financial strategy bolsters the State's solid position to continue its progress and efficiently respond to priority national needs.
The approval of this loan reflects strategic planning and active management of economic resources, allowing the Ministry of Economy and Finance to receive constant proposals from local and international financial entities. The goal is to generate greater competition, diversify funding sources, and ensure access to the best available conditions in global financial markets at all times.
Compared to a loan in dollars, this agreement represents a saving of 1.91%, demonstrating the efficiency, prudence, and agility in the financial administration of the country. Previously, the Cabinet Council had authorized the MEF to subscribe financing structures for a total accumulated and revolving amount of up to six billion United States dollars with various local and international financial entities, which evidences active and strategic management of financial resources by the government.
