The World Bank Board of Directors approved on December 18, 2025, a refinancing of Panama's debt. This operation will allow the country to refinance debt maturing in the first months of 2026, using cheaper money and with longer terms, according to the Ministry of Economy and Finance (MEF). Minister Felipe Chapman highlighted that this is an unprecedented operation in the hemisphere, where the World Bank not only lends but also guarantees, lowering the risk and allowing Panama to access financing with a much lower premium than the traditional market. With this move, the Government seeks to order the public debt, give oxygen to the State's finances, and maintain economic stability, at a time when every dollar saved counts for the country and for its people. 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 less interest. 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.
Panama refinances debt with World Bank support
The World Bank has approved a $1.9 billion refinancing package for Panama, a groundbreaking move that will save the country hundreds of millions in interest and bolster its economic stability.
