Approval of $75 million loans granted for the second phase of the ITSE

He Ministry of Economy and Finance and the Andean Development Corporation (CAF) will sign a loan agreement for 75 million dollars to partially finance the “Project Implementation of the Specialized Higher Technical Institute – ITSE, Phase II”.

The Andean Development Corporation through note OPAN-0262022 on February 7, 2022, it informed the Ministry of Economy and Finance of its consent to the new financing request to continue the second phase of the aforementioned project and start the evaluation, coordination and implementation processes of said project.

This is the second loan that complies with the request for financial resources made by the Ministry of Economy and Finance through note DdFP/NRVl 159 of September 29, 2016, for the financing of the Project Higher Technical Institute of Eastern Panamaup to the sum of 150 million dollars, thus fulfilling phases I and II of the project.

He Cabinet Decree published in the Official Gazette It indicates among the objectives of this loan, to provide the Panamanian population with adequate facilities and equipment for the training of higher education technicians, in accordance with the needs of the different sectors of the economy that make up the national labor market.

“With this second operation, the ultimate goal is to support the Higher Specialized Technical Institute in the full development of the academic, institutional and governance dimensions; the provision of furniture and equipment; and the realization of complementary interventions to the infrastructure, which will allow the completion of the implementation started in the first phase”, he detailed.

The loan contract establishes a 6-month SOFR reference rate payable semi-annually, plus a margin of 2.0%.

During the first eight (8) years from the Effective Date, CAF will finance eighty-five (85) Basic Interest Rate Points on a non-reimbursable basis.

It was agreed for a term of 20 years, with an amortization of thirty (30) semi-annual installments, consecutive and, if possible, equal, to which the interest accrued at the expiration of each of the Interest Periods will be added.

The first of the repayment installmentsThe second amortization installment will be paid sixty-six (66) months from the effective date of the Contract, on the Interest Payment Date that corresponds to the seventy-two (72) months from from the effective date of the Contract, and so on until completing the number of installments.

The loan agreement also establishes a commitment fee of up to 0.35% per annum on the undisbursed balance of the loan and a one-time financing fee of up to 0.85% on the loan amount.