State owned bank bails out Odebrecht
PANAMA’S National Bank (Banco Nacional de Panama) has thrown a financial lifeline to the Odebrecht led consortium, that is constructing Metro line 2.
The Odebrecht construction company, mired in corruption scandals, has reached a financing agreement with the bank that will fill the gap created last year when the US Citibank rescinded its pledge to help finance the project.
The Citibank decision was made due to the scandals surrounding the firm.
The National Bank has purchased bills recognized as
Certificates Without Objection issued in favor of Consortium Line 2.
This generated $120 million in financing for the consortium. The bank will collect interest on the payments which are made by the government.
It is the first time that the state entity has made a transaction of this type, which are usually reserved for private entities reports La Prensa
The Metro expansion is slated to be finished in 2019, in time for the vsist of Pope Francis to the World Youth conference. The timing for completion has been brought forward with the likelihood of increased costs.
