The International Monetary Fund (IMF) has approved a credit of $2.7 billion to Panama, the cash will be used by the Central American country as a cushion to come out of the plunge it found itself courtesy of the coronavirus pandemic.
The executive board of IMF approved the two year arrangement under its Precautionary and Liquidity Line (PLL) in which it will serve as an insurance against extreme external shocks that the pandemic has instilled in Panama’s economy.
According to IMF, the criteria for determining Panama’s eligibility for the credit was based on the country’s ‘sound economic fundamentals, strong institutional policy frameworks, long track record of good economic performance and policy implementation.’
IMF says the pandemic has significantly affected Panama’s economy the international financial body is expecting Panama to use the funds in an adequate level of spending to support its health care and other social programs which have been greatly affected.
