Panama to mobilize up to $1 billion in private financing through alliance with BID Invest

Panama is set to mobilize up to $1 billion in private financing through a strategic alliance between the Ministry of Economy and Finance (MEF) and BID Invest. This initiative aims to stimulate economic growth, broaden access to funding, and bolster productive sectors with significant job creation potential.

The agreement involves BID Invest providing financing and technical support for private sector projects. Importantly, it does not involve the creation of a public fund or state administration of resources. The MEF clarified that BID Invest will independently identify, evaluate, and approve each operation, with the ministry acting as a strategic partner to foster an investment-friendly environment.

Resources can be channeled directly to private companies and projects, or through financial institutions that enhance credit access for micro, small, and medium-sized enterprises (MiPymes), a key focus of this strategy. In the first half of 2026, BID Invest committed approximately $200 million in new operations in Panama, and this volume is expected to increase as eligible projects are identified and approved.

The strategy adopts a multisectoral approach, prioritizing areas such as construction, tourism, and logistics. It will also support initiatives in energy, water and sanitation, housing, digital infrastructure, manufacturing, agribusiness, and financial services. Projects funded must meet environmental, social, corporate governance, and integrity standards. Additionally, commercial financing may be supplemented with technical assistance and concessional resources for high-impact climate projects, including renewable energy, energy efficiency, electric mobility, and resilient infrastructure.

The MEF emphasized that this initiative does not generate public debt or require sovereign guarantees from the Panamanian state. All operations will be handled by the private companies or financial institutions receiving the funds, meaning these financings will not be counted as government debt or affect the country's fiscal targets.