Fondo de Ahorro de Panama to Make First Withdrawal Due to COVID-19 Pandemic
Posted on 07/20/2020
Panama’s sovereign wealth fund, Fondo de Ahorro de Panama, made its first ever withdrawal due to the COVID-19 global contagion.
According to the press release, “The Board of Directors of the Fondo de Ahorro de Panama (hereinafter, “FAP” or “Fund”), pledges its commitment to help support the country and the Administration in their fight against the economic consequences of the COVID-19 pandemic.
For this reason, and based on the withdrawal request from the Ministry of Economy and Finance (the “MOF”) and the pertinent legal and financial considerations, the FAP’s Board of Directors approved on July 16, 2020, the transfer of USD 85 million from the Fund to the National Treasury.
According to the MOF’s withdrawal request, the foregoing funds will be utilized as follows:
USD 5 million – to support the programs in execution of the Ministry of Health regarding the purchase of medical supplies and equipment, medicines, among others; and
USD 80 million – to provide fund support to the Administration’s “Solidarity Fund for Housing,” a program designed to increase affordable housing for low-income earners.
This withdrawal request is carried out in accordance with article 5 of Law 38 of 2012, which creates the FAP and authorizes that the FAP’s funds may be used during a state of emergency declared by the Cabinet´s Council (said declaration is contained under Cabinet Resolution No. 11 of march 13, 2020, in spanish only).”