The Cabinet Council, headed by President José Raúl Mulino, approved on Tuesday the Cabinet Decrees that authorize the creation of two trusts aimed at promoting the financing of Micro, Small and Medium Enterprises, as well as promoting sustainable economic recovery through investments that contribute to improving the productivity and sustainability of the Panamanian productive fabric.
Therefore, Cabinet Decree No. 37-24 was approved, which authorizes the signing of the trust contract called “Creation and Development of the Panama Guarantee Fund” between the Ministry of Economy and Finance, as Trustee, and the National Bank of Panama, as Trustee, with the aim of increasing the levels of financing in the Micro, Small and Medium Enterprises sector, in the country, to improve their productivity.
The trust “Creation and Development of the Panama Guarantee Fund” will initially be constituted for an amount of one hundred and fifty million dollars (US$150,000,000.00), from the loan contract signed with the Inter-American Development Bank, authorized by Cabinet Decree No. 1 of January 10, 2024.
According to the Cabinet Decree, the purpose of this trust is to constitute an autonomous heritage with the resources transferred by the Trustee to the Trustee and future additional contributions, for the administration and execution of the Creation and Development program of the Panama Guarantee Fund, “sonly and exclusively as a source of financing through credit facilities granted by the National Bank of Panama.”
It is established that the Executive Body, through the Ministry of Economy and Finance, will include in the General State Budget, of each fiscal year, the items necessary to cover the obligations arising from the Trust Contract that is authorized by means of the Cabinet Decree.
The Cabinet Council also authorized today, through Cabinet Decree No. 36-24, the signing of the trust contract “Global Credit Program for Sustainable Economic Reactivation”, between the MEF, as Trustee and the National Bank of Panama, as Trustee, to promote sustainable economic recovery through investments that contribute to improving the productivity and sustainability of the Panamanian productive fabric.
This trust will initially be constituted for an amount of one hundred and sixty million dollars (US$160,000,000.00), from the Loan Contract No. 5630/OC-PN, signed with the Inter-American Development Bank.
The purpose of this second trust approved in the Cabinet Council is to constitute an autonomous heritage for the administration, monitoring of the performance and execution of the Global Credit Program for Sustainable Economic reactivation, solely and exclusively as a source of financing through credit facilities granted by the National Bank of Panama.