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Precautionary Credit Line Provides Panama with Crisis Insurance HTML File


Precautionary Credit Line Provides Panama with Crisis Insurance HTML File
01/20/2021 | 02:34pm EDT
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Panama city harbor: Panama s capital city has been especially hard hit by COVID-19. (photo: OGPhoto by Getty Images)
January 20, 2021
On January 19, 2021, the IMF Executive Board approved Panama s request for a 2-year Precautionary Liquidity Line (PLL) of $2.7 billion.
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After over two decades of record high growth, Panama is facing a sharp economic contraction following months of pandemic-related lockdowns. With support from the IMF, the government is combating the economic shock, but with a second wave of contagion potentially underway, the country is using the precautionary liquidity line as an insurance policy against new shocks. ....

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