The Inter-American Development Bank Group made available to Panama contingent financing of up to USD 300 million and USD 500,000 in non-reimbursable funds to address the emergency following the devastating magnitude 7.7 earthquake that shook the country yesterday, October 9.
The international financial assistance seeks to support rescue efforts, technical damage assessment, and priority care for thousands of people affected in the hard-hit regions of Panamanian territory.
The multilateral organization's economic support comes from the Contingent Credit Facility for Natural Disasters and Public Health Emergencies that the Central American country maintains signed with the institution.
The coverage explicitly contemplates the response to seismic events, while the non-reimbursable resources channeled as technical cooperation will allow for the acquisition of essential humanitarian assistance supplies, infrastructure analysis in vulnerable areas, and the structuring of the medium-term recovery plan.
"The IDB Group stands with the Panamanian people in this difficult moment. These resources will allow the Government to quickly attend to affected families and plan the recovery. We will continue working hand in hand with the authorities at every stage of the response," said the president of the multilateral institution, Ilan Goldfajn, reaffirming the institutional commitment aligned with the regional program Prepared and Resil…
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Collapsed concrete structures and crushed vehicles after the violent magnitude 7.7 earthquake that affected various regions of Panama (Courtesy: Telemundo). The Inter-American Development Bank Group made available to Panama contingent financing of up to USD 300 million and USD 500,000 in non-reimbursable funds to address the emergency following the devastating magnitude 7.7 earthquake that shook the country yesterday, October 9. The international financial assistance seeks to support rescue efforts, technical damage assessments, and the priority care of thousands of people affected in the hard-hit regions of Panamanian territory. The multilateral organization's economic support comes from the Contingent Credit Line for Natural Disaster and Public Health Emergencies that the Central American country maintains subscribed with the institution. The coverage explicitly contemplates response to seismic events, while the non-reimbursable resources channeled as technical cooperation will allow for the acquisition of essential humanitarian assistance supplies, infrastructure assessments in vulnerable areas, and the structuring of the medium-term recovery plan. "The IDB Group stands with the Panamanian people in this difficult moment. These resources will allow the Government to quickly attend to affected families and plan the recovery. We will continue working hand in hand with the authorities at every stage of the response," said the president of the multilateral institution, Ilan Goldfajn, reaffirming the institutional commitment aligned with the regional program Prepared and Resilient in the Americas. The IDB Group announced the availability of up to USD 300 million in contingent financing and USD 500,000 in non-reimbursable funds to support Panama following the earthquake emergency. Given the magnitude of the damage caused by the earthquake and the dozens of aftershocks recorded in the national territory, the Government of Panama proceeded to declare an official state of emergency. Along those lines, the Executive allocated an initial fund of USD 100 million for the direct and immediate attention to the crisis, as confirmed by the Minister of the Presidency, Juan Carlos Orillac. Preliminary reports gathered by relief agencies indicate the presence of 426 homes with severe, moderate, or minor damage, representing a total of approximately 2,130 people affected. Field inspections are being carried out by the Ministry of Public Works, the Ministry of Housing and Land Management, and the National Civil Protection System (Sinaproc), entities that verify the safety conditions of structures to determine whether the buildings can be inhabited again. At a press conference, Government of Panama authorities announce the declaration of a state of emergency due to the recent earthquake. Funds of up to 100 million dollars to assist those affected are detailed. The Minister of Economy and Finance, Felipe Chapman, explained that the various state agencies, including the Health and Education ministries, will submit their budgetary requirements for technical review. Likewise, the official indicated that the economic team is evaluating the activation of international banking mechanisms and electronic platforms to receive cash donations intended for those affected. The multilateral economic response was joined by CAF—Development Bank of Latin America and the Caribbean, an institution that approved an immediate donation of USD 250,000 in non-reimbursable funds intended for urgent humanitarian assistance. This direct financial contribution seeks to guarantee the supply of bottled water, non-perishable food, and basic necessities in the provinces of Los Santos, Herrera, Veraguas, and Coclé. Additionally, the banking institution made available a contingent credit line of up to USD 50 million to finance the reconstruction of destroyed or deteriorated public infrastructure. This financial tool will allow the State to undertake the repair of roads, bridges, schools, and hospital facilities damaged by the earthquake. For its part, the Government of the United States formalized the sending of logistical aid, consular personnel, and operational support on the ground following the request of Panamanian authorities. The American deployment includes the support of a long-range helicopter from Southern Command, equipped to carry out emergency air transfers, rescue operations, and the transport of medical supplies in the Azuero region and hard-to-reach areas.