LatinNews Daily - 22 December 2025

*The World Bank (WB)’s executive board has approved a loan combining three WB Group (WBG) financial instruments to “strengthen fiscal sustainability and facilitate the mobilization of private investment, contributing to economic development and job creation.” According to a WB press release, the operation includes a US$500m development policy loan for fiscal management and growth. It also includes two WBG guarantees to back a commercial loan of up to US$1.4bn which cover 95% of the loan and interest, enabling the country to access financial resources “on more favorable terms, generate fiscal savings, and strengthen public debt management”. The WB press release notes that the development policy loan supports “key structural reforms to boost investment, such as updating the Fiscal Responsibility Law, strengthening the pension system, improving tax administration, and developing the local debt market”, among other things. It cites Panama’s economy and finance minister, Felipe Chapman, as saying that the operation “sends a signal to international markets about the government’s determination to advance structural reforms that improve people’s well-being.”

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