Panama Forges $1.1bn Stimulus

Panama president Martin Torrijos has announced that in light of the global financial crisis, the government will create a $1.1bn financial stimulus program to provide credit to local banks and financial entities so they can extend credit to their clients. The program’s funds, to be managed by the National Bank of Panama, will come from CAF, the IDB and the bank itself. Torrijos explains that this is “not a subsidy program or a financial rescue” but instead a “preventive measure” that will “not increase public indebtedness.” JPMorgan thinks this is good news. “We welcome the Torrijos administration’s efforts to shield Panama from a protracted global financial crisis,” the shop says, adding that the funds constitute 4.8% of GDP.