Two large international groups have announced plans to send millions of dollars to Panama in the wake of the pandemic.
The Central American Bank for Economic Integration (CABEI) says it will invest $50 million in infrastructure projects in the region, with Panama one of the primary targets. The Bank will be a strategic investor in the “Private Capital Fund for Infrastructure Development in Central America” (KorBCIE), a private equity fund that will invest up to$1 billion in projects.
“The Fund will allow the countries of the Central American region to position themselves as an attractive investment destination and may serve as an accelerator to add international investors, especially from the Republic of Korea,” according to a statement from the CABEI.
Increasing investment in the region from Korea is one of the fund’s major goals. The bank’s participation in the KorBCIE fund “is another step towards the consolidation of the relations between CABEI, the countries of the Central American region, and the Republic of Korea, said CABEI’s Executive President, Dr. Dante Mossi. The investment initiative will include “the transfer of knowledge and experience to our countries,” in addition to promoting “the design and execution of projects focused on climate change and digital transformation for the creation of employment as a response to the effects of the COVID-19 pandemic.”
While it is an opportunity for the financial community, the bank also emphasized the importance of private investment as countries like Panama emerge from the pandemic.
“This type of financial mechanism will complement and encourage the financing provided by the private sector,” Mossi said.
Meanwhile, the World Bank has approved a $300 million loan to support Panama’s response to the coronavirus pandemic and its economic recovery. The money will be focused on health and education initiatives, which should help create a smooth and prosperous recovery.
The loan is part of a support package that the World Bank made available to Panama in 2020 to help mitigate the health and economic crisis.
Both packages illustrate how Panama will be able to marshall a wealth of resources to help the country bounce back from the pandemic stronger than ever, with the helps of its solid economic foundation.