Panama's Strategic Refinancing Improves Financial Conditions

The National Government carried out a strategic refinancing that allows replacing expensive debts with cheaper debt, improving the country's financial conditions. The Ministry of Economy and Finance (MEF) explained that the resources obtained will be allocated to the repayment of existing debts, including the Global Bond that matures on January 29, 2026, for $980 million, which pays an interest rate of 7.125%, that is, 4.42% below the original rate. According to the MEF, this operation generates significant savings in interest, contributes to improving the use of national budget resources to be used for health, education, security, public investment, and social programs, for the direct benefit of the population. The entity also reported that the reduction in the financial cost is possible thanks to the guarantees provided by the World Bank, an institution with an AAA credit rating, reflecting international confidence in the reforms and public policies that Panama has been implementing. This step strengthens the country's image in international markets, reduces the perception of risk, and consolidates a responsible fiscal management, aligned with international best practices. Through the corresponding legal authorizations, the MEF finalized a financing backed by the World Bank, authorized by Cabinet Decree No. 41 of December 23, 2025, published in Official Gazette No. 30435 on December 31, 2025. The main financing, for an amount equivalent to $1,400 million, was structured for a 10-year term with an effective rate of 2.71%, generating a saving of 2.27% compared to the country's average weighted rate for 2025. “Our objective is clear: to take care of the State's resources and put them at the service of the well-being of all Panamanians,” states the MEF.