In the official gazette on Wednesday, October 16, the decree was promulgated which the  Republic of Panama agrees to a financing of US$ 1 billion with the JP Morgan Chase bank.

According to the document, these funds will be used to support and finance the 2024 budget, and a six-month (4.4% at this time) plus 1.5% will be paid over three years.

Likewise, an initial commission of 0.50% of the total amount of the lenders’ commitments is established with respect to the facility upfront fee that will be paid on the date of use and an opening commission at an amount equivalent to 1% of the amount of the lenders’ commitments in relation to the arragement fee paid on the date of use, this represents about US$15 million.

The decree is signed by the Minister of Economy and Finance, Felipe Chapman had announced that the government would use this type of financing through private banks.

However, on October 3, he told SNIP News “What is needed for the cash flow cycles here has to end the year are already planned in the plan and we do not have to go to the international markets fortunately we do not have to take those very good and generous credit offers that banks have made us in the short term.”

He also indicated that the local market will be used.

SNIP News asked about the change in the decision, but until the time of publication of this news there was no response.