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Signing of a Loan Agreement with Panama-based Global Bank Corporation (Private Sector Investment Finance): Improving access to finance for micro-, small and medium-sized enterprises in Panama through the Project for Financial Inclusion and Improvement of Regional Disparities
On March 1, the Japan International Cooperation Agency (JICA) signed a loan agreement with Global Bank Corporation, a private financial institution in the Republic of Panama, for up to US$50,000,000 to improve access to finance for the country's micro-, small, and medium-sized enterprises (MSMEs) through the Project for Financial Inclusion and Improvement of Regional Disparities. The project also aims to promote the economic empowerment of women and support the agriculture sector. This is the first Private-Sector Investment Finance project in Panama.
With huge income disparities being a significant developmental issue in the country, the promotion of MSMEs is expected to contribute to reducing the income gap by boosting employment growth. Access to finance for MSMEs is currently insufficient due to both a lack of information regarding how to access said finance and the perception of a higher credit risk for MSMEs. Furthermore, access to finance for MSMEs run by women (WMSMEs) is especially lacking and rectifying this disparity is thus also a significant issue.
Signing ceremony
Agricultural MSME customer visit
Global Bank Corporation is a regulated Panamanian financial institution that offers a wide range of financial products and services throughout the country. Over its nearly 30 years of history, Global Bank has been a leader in supporting MSMEs, WMSMEs, and agriculture-based MSMEs, always with a strong commitment to supporting all of its clients with the necessary financial products and technical support as well as to the broadening of Panama’s economic development.
This project will contribute to sustainable industrial development through improved access to finance for MSMEs in Panama, while also contributing to the achievement of SDGs Goals 2 (Zero hunger), 5 (Gender equality), 8 (Decent work and economic growth), 9 (Industry, innovation and infrastructure), and 17 (Partnerships for the goals).
This project is part of the continued collaboration and partnership framework of the Inter-American Development Bank (IDB) Group, namely the “Cooperation for Economic Recovery and Social Inclusion (CORE).”
This year marks the 120th anniversary of the establishment of diplomatic relations between Panama and Japan. JICA looks forward to continuing to be a strategic partner for Panama and to help further expand economic activities and businesses that promote and support sustainable growth within the country.
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