PANAMA · ECONOMY
Key Facts
- —What is happening Panama has opened a US$310 million credit and guarantee package for small firms hit by the 9 October earthquake, unveiled this week by the finance ministry.
- —Why it matters Many small firms were hit by the quake, so access to credit decides how fast businesses in the quake zone can reopen.
- —The numbers A US$160 million credit programme has US$100 million ready now. A separate US$150 million guarantee fund backs firms that lack enough collateral.
- —Who is who Banco Nacional de Panamá, the state bank, runs both funds with the finance ministry and the Washington-based Inter-American Development Bank (IDB).
- —What to watch How many loans banks approve from the US$100 million available now, and whether the guarantee fund grows beyond US$150 million.
- —Power Index Panama ranks 11th of 14 in The Rio Times Latin America Power Index, with 34.2 points (October 2026 edition).
- —What it means for you US residents and investors with a damaged business in Panama should ask a participating bank; rules for foreign owners were not stated.
Panama has opened US$310 million in loans and guarantees for small firms hurt by the 9 October earthquake. The money comes from lending agreed with the Inter-American Development Bank before the quake.
Panama quake credit now totals US$310 million in loans and guarantees for small businesses damaged by the 9 October earthquake. The government presented the package at a press conference, La Estrella de Panamá reported on Thursday, 22 October.
The Ministry of Economy and Finance (MEF) published the figures in a statement dated 21 October, and Panamá América reported them. Panama uses the US dollar, so the loans are in dollars and matter to American residents and investors.
What the US$310 Million Package Contains
The ministry splits the Panama quake credit into two funds. The first is a US$160 million credit programme, of which US$100 million is available immediately.
La Estrella lists the permitted uses: payroll, supplier bills, repairs to damaged buildings, and replacing stock or machinery. The ministry adds that firms may also fund other investments needed to recover.
The second fund holds US$150 million in guarantees for firms that lack enough collateral. It covers up to 50% of the guarantee a bank requires, La Estrella reported.
La Estrella reported that Banco Nacional manager Javier Carrizo put the guarantee at up to US$300,000 on loans of up to US$600,000. Terms run up to 12 years, and each lender sets its own rate.
How Small Firms Can Apply
Money moves through 19 lenders, La Estrella reported: 13 banks, four finance companies and two cooperatives. The banks include Banco General, Caja de Ahorros, Banesco, Davivienda and Banco Nacional itself.
La Estrella reported that more than 1,000 lender staff were trained and a first US$4 million of credit limits was assigned. Firms apply at the branch they already use, not at a government office.
La Estrella reported that Commerce Minister Julio Moltó surveyed damaged businesses with the UN Development Programme and the EU’s Copernicus satellites. It keeps a live inventory of damaged shops to direct the help.
Carrizo asked lenders to charge the lowest rates they can in these critical times. He did not name a rate or a cap, and each bank applies its own policy.
Not New Money, but a New Use
Neither fund is new. The Cabinet approved both trusts on Tuesday, 3 September 2024, from Inter-American Development Bank loans, La Estrella reported.
Finance Minister Felipe Chapman said the model adds no national debt because it uses money negotiated earlier with the IDB. The announcement therefore points existing lending at the quake zone rather than adding new funds.
La Estrella quoted Carrizo saying the guarantee fund could be doubled or tripled through the IDB if demand is high. The ministry has not said how much more the bank would add.
What It Means for US Readers
Americans who own a damaged shop, guesthouse or farm business in Panama may ask a participating bank about a dollar loan. Officials have not said whether foreign owners qualify.
For investors, the plan shows Panama steering multilateral money to recovery, which Chapman says adds no debt and which matters to bondholders. The IDB is headquartered in Washington and lends across the region.
Background is in earlier reports on the two quake rebuild trusts, the aid for local councils and the 3.5% deficit cap. The guide to who runs Panama’s economy and the Panama news hub explain the wider economy.
What Is Not Known
It is not known how many firms have applied or how many loans have been approved. Only La Estrella reported a first US$4 million of credit limits as assigned.
Interest rates are not published, because each lender sets its own. The sources also do not say whether the 2024 targets for women-led and climate projects apply to quake loans.
The IDB’s own announcement could not be opened, so its role rests on the ministry release. The press conference date and the total business damage have not been given.
What Comes Next
The first lending totals from Banco Nacional will show whether the US$100 million available now is enough. The ministry has not given an end date for applications.
The package is not a grant, and it does not pay for repairs to public buildings. Those costs sit with the emergency trusts and the national budget.
Frequently Asked Questions
What is Panama’s US$310 million small business package?
It combines a US$160 million credit programme and a US$150 million guarantee fund for firms hit by the 9 October earthquake. Banco Nacional runs both with the finance ministry and the IDB.
Who can apply for the loans?
Micro, small and medium firms hurt by the quake in commerce, tourism, industry and farming, Chapman said. They apply at participating banks, finance companies and cooperatives.
Is the money new debt for Panama?
Chapman says no, because the funds come from IDB lending negotiated earlier. The Cabinet approved both trusts on 3 September 2024.
How large a loan does the guarantee support?
La Estrella reported the guarantee covers up to US$300,000 on loans of up to US$600,000, for up to 12 years. Each lender sets its own rate.
Are the loans in US dollars?
Effectively yes. The ministry quotes balboas (B/.), pegged one-to-one to the dollar, and Panama uses US banknotes.
Sources: Ministerio de Economía y Finanzas, Programa y fondo para impulsar MiPyMES por B/.310 millones; La Estrella de Panamá, 22 October; Panamá América, MiPyMES package report; La Estrella de Panamá, 4 September 2024 (all accessed 24 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief