Panama, Uruguay Secure IDB Loans

The IDB has approved a $500m loan for Panama. The loan is expected to partially offset a shortfall in USD denominated lending to the productive sector. The shortfall is a result of the global financial crisis, the bank says. The loan is for a 5-year term, with a 3-year grace period, at an interest rate based on 6-month Libor plus 400 basis points. Meanwhile, the IDB has approved a $285m loan for Uruguay to streamline the tax system and improve central government efficiency. The loan is for a 20-year term, including a 5-year grace period, with a variable interest rate based on Libor.