Caja de Ahorros Panama - COVID-19 Response (MIGA-14646)

Countries
  • Panama
Where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 20, 2020
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Financial Institutions to be identified
The holder of the loan, grant, or other investment.
Sectors
  • Education and Health
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 190.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 190.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Apr 23, 2020

Disclosed by Bank Apr 20, 2020


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Project Description

According to bank documents, MIGA is considering issuing a guarantee of up to US$190 million for a period of up to 10 years against the risk of Non-Honoring of a Financial Obligation by a State-owned Enterprise (NHFO-SOE).

In the absence of a central bank, Panama's two state-owned banks, Caja de Ahorros and Banco Nacional de Panama, expect to provide liquidity to companies and other financial institutions to help the economy weather and rebuild from the COVID-19 crisis.Specifically, the proposed Loan Facility would allow Caja de Ahorros to provide (i) working capital loans to financial institutions, micro, small and medium enterprises, and corporations to keep businesses operating during the acute phase of the crisis; and (ii) once the acute phase is over, working capital loans to sustain businesses until they are fully recovered. 

MIGA has given this project a risk category of FI-2.

 

Investment Description
  • Multilateral Investment Guarantee Agency (MIGA)
Contact Information

*Project contacts not provided at the time of disclosure*

 

ACCOUNTABILITY MECHANISM OF MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/