The Ministry of Economy and Finance (MEF) confirmed that the Council of Cabinet approved a World Bank financing package of up to $1,900 million to alleviate the debt burden and pay lower interest rates. This backing, approved by the World Bank's Board of Directors on December 18, 2025, will allow the country to refinance debts maturing in the early months of 2026, using cheaper money and longer terms, according to the MEF. The disbursement is scheduled for January 2026 and will be used exclusively for existing debt. According to the MEF, the operation represents a direct saving of 2.29% in interest rates, which translates to $64.6 million less per year and nearly $830 million in interest over the life of the loans. In simple terms: less pressure today and less payment tomorrow. Minister Felipe Chapman highlighted that this is an unprecedented operation in the hemisphere, where the World Bank not only lends but also guarantees, reducing risk and allowing Panama to access financing with a much lower premium than the traditional market. With this move, the Government seeks to order public debt, give oxygen to State finances, and maintain economic stability, at a time when every dollar saved counts for the country and its people.
