IDB funds pandemic relief in Panama, Costa Rica

  • The Inter-American Development Bank (IDB) has granted $400 million in financing for Panama and $250 million for Costa Rica to help counteract the economic effects of the COVID-19 pandemic in the two countries.
  • Both loans are in line with a rapid financing program approved by the International Monetary Fund (IMF) in April to cover emergency healthcare costs and contribute to macroeconomic stability in the medium term.
  • To receive the money, the Panamanian government agreed to implement measures to ensure a stable balance of payments and a sustainable public debt-to-GDP ratio. It also agreed consented to "ensure fiscal sustainability" after the healthcare crisis is over.

 (Source: Latinfinance)