IBRD Loan: US$80 million
TERMS: Maturity = 20 years; Grace = 2 years
Project Description: The Protecting the Poor Under Global Uncertainty for Panama aims to support the poverty reduction efforts of the Government of Panama in the context of the current global financial crisis and economic slowdown. Specifically, it supports policy measures, which: (a) mitigate the impact of economic shocks on the poor through improved targeting and coverage of social sector programs, and (b) help reduce the risk of an economic and financial crisis through enhanced banking sector risk management and strengthened banking regulation and supervision. Maintenance of financial sector stability is a necessary condition to poverty reduction efforts as it is fundamental to sustained growth. Moreover, the costs of financial and economic instability tend to be borne disproportionately by the poor. The Protecting the Poor under Global Uncertainty DPL also assists Panama by providing access to long-term financing to support priority spending during the global financial crisis.