PANAMA · DISASTER RELIEF
Key Facts
- The country Panama uses the US dollar and runs the canal linking two oceans, led since July 2024 by conservative President José Raúl Mulino.
- What happened On Thursday 15 October, Panama began paying quake relief to local governments: US$10,000 to each district representative and US$20,000 to each municipality.
- The purpose Mayors and community leaders can buy water, medicine, food and household goods for families whose homes the 9 October earthquake damaged.
- The limits The state audit office supervises the spending, and Mulino calls this a first payment, not the full sum.
- The wider bill The Cabinet approved up to US$100 million for the emergency on 10 October, and the finance minister says spending is still far below that.
- Power Index Panama ranks 11th of 14 in The Rio Times Latin America Power Index, with 34.2 points (October 2026 edition).
- Still open How many local governments are paid, the total cost of the first round and the dates of later transfers.
Panama began paying earthquake relief to local governments on Thursday 15 October, with US$10,000 for each district representative and US$20,000 for each municipality. President José Raúl Mulino announced the Panama quake aid on X and said the state audit office would check the spending.
The payments matter to foreign readers because Panama runs on the US dollar and hosts many US visitors and retirees. They show how fast Panama quake aid reaches damaged towns after the 9 October quake and how tightly the government controls it.
What Panama Is Paying and to Whom
Mulino said on X that the money would be deposited on Thursday 15 October in the juntas comunales and the alcaldías. The juntas comunales are community boards led by the elected representatives of Panama’s districts, called corregimientos, and the alcaldías are the municipal governments.
Each district representative receives US$10,000 and each alcaldía US$20,000 in Panama quake aid, according to La Estrella de Panamá. The paper said the money is for direct aid to people affected by the earthquake.
Telemetro reported that this is a first payment and that further money will follow gradually. The aim is to let mayors and representatives help residents whose homes were damaged or collapsed.
Mulino also said the sums do not necessarily equal the total that local governments will receive. He added that the money sent now is not everything, but that giving cannot run wild because the funds are public, Telemetro reported.
What the Money Can Buy and Who Watches It
Telemetro reported that the Panama quake aid can cover drinking water, medicine, food, household goods and other urgent needs of affected families. Mulino stressed that this is not a piñata handing out cash, using the Spanish word for a party game to make his point.
The Contraloría General de la República, the state audit office, will supervise the spending closely, Mulino wrote. Comptroller General Anel Flores asked mayors and representatives to act with “prudence” when they handle the transferred money, Telemetro reported.
La Prensa reported that the comptroller also reviews each emergency purchasing contract after it is signed. Housing minister Jaime Jované’s ministry buys materials through online quotations under emergency rules.
How Hard the Quake Hit
The earthquake struck on Friday 9 October La Estrella reported. Its epicentre lay between Tonosí and Torío in Los Santos province.
Damage was reported in Coclé, Herrera, Los Santos and Veraguas provinces, and the Cabinet then approved a state of emergency. Canal Affairs Minister José Ramón Icaza said on Wednesday night that 3,696 people were in 45 shelters, up 855 from 2,841 on Tuesday.
The presidency said on Thursday that more than 465 tons of aid had reached households, including more than 16,000 food bags in 117 communities. Of 842 health facilities checked, 69 had minor damage, and about 600 official schools were damaged.
How Panama Is Paying for the Recovery
The Cabinet authorised up to US$100 million for Panama quake aid and repairs on Saturday 10 October, La Prensa reported. Finance Minister Felipe Chapman said the government is still very far from that ceiling.
Chapman said the state savings fund will not be touched, because using it requires damage above 0.5% of economic output, about US$450 million. The deficit target stays at 3.5% of GDP, and the ministry will not ask the Assembly to waive the fiscal responsibility law.
Two trusts hold the donations for Panama quake aid. The public trust at Banco Nacional takes multilateral donations and catastrophe insurance payouts, while the private trust sits at the Caja de Ahorros bank.
Community boards must file formal requests and show that each expense ties to quake damage to draw on the public trust. A website showing how public funds are used was announced, but no launch date was given.
What It Means for You
Tourism officials said on Wednesday 14 October that more than 90% of hotels are operating, at an average occupancy of 67%, La Estrella reported. Copa Airlines marketing director Marco Ocando said operations at Tocumen airport recovered within about 72 hours.
Gloria de León, head of the national tourism authority, said the most affected establishments are in Penonomé and Pedasí. Travellers heading to the interior should check official advice from the tourism authority and the civil protection agency Sinaproc first.
For investors in Panama, the finance ministry’s message is that the 3.5% deficit target holds and the savings fund stays untouched. Readers who want to give can use the private trust, which presidential adviser Eduardo Arango will coordinate.
What Is Not Known
Officials have not said how many community boards and municipalities will receive Panama quake aid or what the first round costs in total. They have also not given dates or amounts for the later transfers that Mulino mentioned.
No body has been named to audit the private donations trust, and it is unclear whether its accounts will be public. The final repair bill is also open, with Chapman saying only that it remains far from the US$100 million ceiling.
More: Panama news in English, every day from The Rio Times.
Frequently Asked Questions
How much quake aid is Panama sending to local governments?
Panama quake aid starts at US$10,000 to each district representative and US$20,000 to each municipality as a first payment. President Mulino said more transfers may follow.
Who checks how the Panama quake aid is spent?
The Contraloría General, Panama’s state audit office, supervises the spending, and Comptroller General Anel Flores asked local officials to act with prudence. Mulino said the office will supervise the funds closely.
Can tourists still visit Panama after the earthquake?
Tourism officials say more than 90% of hotels are operating and the capital remains active. The worst damage is in interior areas such as Penonomé and Pedasí, so travellers should check official advice first.
How big is the budget for Panama quake aid?
The Cabinet authorised up to US$100 million on 10 October. Finance Minister Felipe Chapman said spending is still very far from that ceiling.
Where do donations to Panama go?
Public and multilateral donations go to a trust at Banco Nacional, and private gifts go to a second trust at the Caja de Ahorros bank. Presidential adviser Eduardo Arango coordinates the private contributions.
Sources: Presidencia de Panamá, Más de 465 toneladas de ayuda humanitaria llegan a hogares afectados por el sismo, 15 October 2026; La Estrella de Panamá, Presidente Mulino anuncia ayuda económica para damnificados por el terremoto, 15 October 2026; Telemetro, Presidente Mulino aclara primer desembolso a municipios y juntas comunales, 15 October 2026; Telemetro, Mulino anuncia que podría aumentar fondos para damnificados del sismo, 15 October 2026; Telemetro, Sismo en Panamá: Contralor pide prudencia con fondos para gestionar ayuda, 15 October 2026; La Prensa, Terremoto en Panamá: quién controlará los fondos públicos y las donaciones privadas, 15 October 2026; La Estrella de Panamá, Panamá sigue abierto al turismo pese al terremoto, 14 October 2026.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error