Panama: 2021 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Panama

IMF Staff Country Reports, July 30, 2021

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After over two decades of unprecedented economic expansion, Panama’s economy contracted sharply in 2020 amidst challenges from the COVID-19 pandemic.
As conditions rapidly deteriorated, Panama requested financial support under the Rapid Financing Instrument (RFI) for 100 percent of quota equivalent to US$0.5 billion (SDR 0.4 billion) to address immediate balance of payments needs; the IMF Executive Board approved this on April 15, 2020.
Subsequently, uncertainties magnified, and Panama requested a two-year arrangement under the Precautionary and Liquidity Line (PLL) for 500 percent of quota, equivalent to US$2.7 billion (SDR 1.9 billion), as insurance against extreme external shocks; the IMF Executive Board approved this on January 19, 2021.