Inter-American Development Bank (IDB) announced the approval of a $5 million loan to Panama for a program to strengthen public institutions responsible for reforms to attain macroeconomic stability, improve the investment climate and prepare the country for free trade.
The program will complement the fiscal reforms undertaken by Panama to boost growth and competitiveness. The IDB is supporting those reforms with a $100 million loan approved in March.
The new operation will finance technical assistance for the ministries and government agencies responsible for the reforms as well as for public institutions involved in improving conditions for private sector investment and competitiveness.
Activities will be carried out by the Ministry of Economy and Finance, through its Technical Unit for Public Policy, with the participation of the Ministry of Trade and Industry, the National Department for Science and Technology, the National Commission for Transparency against Corruption (CNTC), the National Procurement Office (PanamaCompra), the Panama Maritime Authority and the Civil Aviation Authority.
The program will finance technical assistance, studies and consensus-building to improve the allocation of fiscal resources for productive activities and support the implementation of the social security fund's new functions and the participation of the private sector in port, airport and job training services.
Assistance will be provided to develop e-commerce, improve the PanamaCompra e-procurement system and strengthen the management of public sector assets and liabilities. Among the new institutions to be strengthened are the Consumer Protection and Competition Authority and the National Office for the Administration of Trade Agreements and Remedies.
The loan is for 10 years, with a four-year grace period and a variable interest rate.
Inter-American Development Bank
marketing@alchempro.com
