With the publication in the Official Gazette of Ministerial Resolution 2024-1529 of June 20, 2024, by which the Sustainable Financing Framework of the Republic of Panama is adopted, the State will be allowed to issue thematic bonds and/or contract green, social and/or sustainable loans in order to partially or totally finance new or existing projects that correspond to one of the eligible environmental and/or social categories.

The financeable projects must be aligned with the criteria established in the Taxonomy of Sustainable Finance of Panama, published on March 27 by the Superintendencies of Banks, Securities Market, and Insurance and Reinsurance of Panama, together with the Sustainable Finance Working Group of Panama.

This Framework was developed with the support of the Inter-American Development Bank (IDB) on the condition of non-refundable financing, through the consulting firm HPL LLC; and is aligned with the principles and guidelines of the International Capital Markets Association (ICMA), Loan Market Association (LMA), Syndicated and Commercial Loans Association (LSTA) and the Asia-Pacific Loan Market Association (APLMA).

It is important to note that Sustainable Fitch, granted its External Opinion (SPO, Second Party Opinion) on this Framework, and considers that its level of alignment with the principles mentioned above, is excellent; and sees in a positive way that the Republic of Panama focuses on the use of resources in environmental and social projects.

In addition, it states that the Republic of Panama has a well-defined project evaluation process, and that it is committed to reporting the allocation of resources and the impact of eligible projects annually.