Early Warning System

Countries

Panama

Geographic location 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

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Borrower

JPMorgan Chase Bank, N.A

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

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, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 620.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Campaign Documents

Primary Source

Original disclosure @ MIGA website

Updated in EWS May 15, 2024

Disclosed by Bank Apr 26, 2024

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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to MIGA, this summary covers loans from JPMorgan Chase Bank, N.A., and/or any of its subsidiaries or affiliates, HSBC Bank plc, and/or any of its subsidiaries or affiliates, and Other Lenders yet-to-be-identified to Banco Nacional de Panamá (BNP), the largest state-owned bank in Panama. MIGA’s coverage has been sought in relation to a Non-Honoring of Sovereign Financial Obligations by a State-Owned Enterprise (NHFO-SOE) guarantee for up to US$620 million to cover an up to US$520 million US dollar debt financing structure with a tenor of up to 5 years and 1 month. The proposed project involves the expansion of mortgage lending to lower-income households by BNP as well as increase access to credit to MSMEs in Panama. As the largest state-owned bank in the country, BNP is a key agent in helping the Government of Panama ensuring access to financing across the country.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

According to MIGA, the project has been categorized as FI-2 in accordance with MIGA’s Policy on Environmental and Social Sustainability (2013).

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

Multilateral Investment Guarantee Agency (MIGA)

MIGA’s coverage has been sought in relation to a Non-Honoring of Sovereign Financial Obligations by a State-Owned Enterprise (NHFO-SOE) guarantee for up to US$620 million to cover an up to US$520 million US dollar debt financing structure with a tenor of up to 5 years and 1 month

Financial Intermediary

A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

JPMorgan Chase & Co (Financial Intermediary)

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

According to Banktrack, JPMorgan Chase is one of the Big Four Banks of the United States (along with Bank of America, Citigroup and Wells Fargo). The bank was formed in 2000 when Chase Manhattan Corporation acquired J.P. Morgan & Co and is headquartered in New York City. JPMorgan Chase operates in more than 60 countries. The bank offers investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity.

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.miga.org/contact/access_to_information

You can also request general information about MIGA and for information on guarantees by emailing: migainquiry@worldbank.org

ACCOUNTABILITY MECHANISM OF IFC/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