IDB Approves Panama Loans

The IDB has approved a $200m loan for Panama to be used to reform the country’s tax administration and improve public spending management. The loan is for a 20-year term, with a 5-year grace period and an interest rate based on Libor. Separately, the IDB approved a $70m loan to Panama to rehabilitate roads. About 80% of roads in Panama are in poor conditions due to lack of preservation, depriving the country’s most isolated communities of access to urban centers, the bank says. The loan has an amortization period of 25 years, a grace period of 5 years and interest rate based on Libor.