The Government of Panama, through the Ministry of Economy and Finance (MEF), announced the authorization of an Unseted Loan Contract for an amount of one billion euros (US$1,302,563,998.67) with Merrill Lynch International, a subsidiary of Bank of America.

This financing, approved on February 28, 2025, will be disbursed in its equivalent in dollars and aims to partially cover the seasonal liquidity needs of the General State Budget for fiscal year 2025, as well as future fiscal years.

The credit facility has a 2-year maturity and a competitive annual interest rate for the country, based on the six-month EURIBOR, currently located at approximately 2.35%, plus an additional margin of 2.11%, resulting in a total rate of 4.46%.

The MEF highlighted that this agreement represents a significant saving of 1.91% compared to an equivalent loan in US dollars, reflecting the efficiency, prudence and agility with which the financial management of the country is handled.

It should be remembered that, previously, the Cabinet Council authorized the MEF, through Cabinet Decree No. 7 of February 4, 2025, to subscribe to financing structures with various local and international financial entities, for a cumulative and rotating amount of up to US$ 6,000 million.