IMF approves emergency financing for Panama

  • The International Monetary Fund (IMF) said it approved a request from Panama for roughly $515 million in emergency financing to help address the economic impact of the coronavirus outbreak.
  • The IMF granted Panama the equivalent of 377 million special drawing rights (SDRs) through its Rapid Financing Instrument (RFI) to cover rising healthcare costs and fill part of a gap in the balance of payments of around $3.7 billion
  • The Panamanian government could relax spending limits in 2020 to increase healthcare spending and make cash transfers to the poor through the Panamá Solidario program. The spending limits would again come into effect in 2021, according to the IMF.

(Source: Latin Finance)