Panama: Request for Purchase under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Panama
IMF Staff Country Reports, May 1, 2020
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- Panama: Request for Purchase under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Panama
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Bibliographic details
- Published: May 1, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513542768.002
Overview and Purpose
- Focus: Panama’s Request for Purchase Under the Rapid Financing Instrument.
- Context: The coronavirus disease 2019 pandemic has disrupted Panama’s economy and created urgent balance of payments (BOP) and fiscal financing needs.
- Objective: Provide IMF emergency support to address BOP needs and support essential pandemic-related health expenditure.
Economic Impact and Uncertainties
- The coronavirus disease 2019 pandemic has disrupted Panama’s economy and created urgent balance of payments (BOP) and fiscal financing needs.
- Significant uncertainties remain, and the economic fallout could intensify further if containment measures must be extended.
- The IMF emergency support under the Rapid Financing Instrument will help provide much needed resources to address BOP needs and support essential pandemic-related health expenditure.
Policy Response and Financial Sector Measures
- The government has resolutely implemented measures to contain and mitigate the spread of the pandemic.
- Measures have been taken to maintain financial sector stability, including by allowing banks to use the accumulated dynamic provisioning to improve their liquidity position and absorb the impact of potential credit losses.
- The authorities stand ready to continue cooperating with the IMF in finding solutions to the balance of payments and fiscal imbalances.
Role of International Partners
- The support of other international financial institutions and development partners is crucial to:
- Close the remaining BOP and budgetary gaps.
- Ease the adjustment burden.
- Preserve economic growth.
Subjects and Keywords (as stated in source)
- Subject: Balance of payments, COVID-19, Current account, Expenditure, Health, Public debt, Revenue administration
- Keywords: authorities project real GDP, authority, balance of payments gap, Central America, COVID-19, CR, Current account, deficit, Executive Board discussion, financing, Global, IMF emergency support, ISCR, Panama's response, response to the outbreak, urgent balance of payments, Western Hemisphere
Content in this bundle
- 1panea2020003