Boosting SME’s in Panama has Agreement by CAF and Banco Nacional to the Tune of $500 Million.

The Development Bank of Latin America and the Caribbean (CAF) and the National Bank of Panama signed an agreement to facilitate a $500 million line of financing, aimed at strengthening small and medium-sized enterprises (SMEs) and promoting national production.  The agreement includes resources directed to strategic sectors of the economy, with special attention to the agricultural, agro-industrial sector and productive activities in rural areas. 

Sergio Díaz-Granados, President of CAF Pictured Above.

Half of the Resources will Go to the Rural Sector.

The Minister of Economy and Finance, Felipe Chapman pictured above, explained that 50% of the fund will be allocated to the countryside and rural areas, mainly to support small and medium-sized producers.

“CAF has facilitated a $500 million financing fund for small and medium-sized enterprises, where half of the resources are destined for the countryside, the rural area, mainly the agricultural and agro-industrial sector,” Chapman noted.

According to the minister, the goal is for producers to be able to access financing under favorable conditions that will allow them to increase their productive capacity.

Financing to Increase Production.

Chapman emphasized that these resources aim to facilitate access to credit for small and medium-sized producers who require capital to strengthen their activities.

“So that these small and medium-sized producers can access financing on good terms and conditions that will help them increase production in their fields,” he stated.

The agreement between CAF and the National Bank of Panama seeks, in this way, to expand financing opportunities for SMEs and contribute to strengthening production, particularly in the rural areas of the country.  The initiative is part of efforts to boost productive credit and support companies and producers that are part of key sectors of the Panamanian economy.