World Bank to boost Panama cooperation

World Bank to boost Panama cooperation

2011-04-29 21:35:11 GMT+7 (ICT)

WASHINGTON, D.C. (BNO NEWS) -- Panamanian President Ricardo Martinelli and World Bank President Robert B. Zoellick met on Thursday to discuss the country's rising economy and continued support from the multilateral institution.

Martinelli and Zoellick met as the World Bank's Board of Directors is scheduled next week to discuss a new $100 million policy loan for Panama, which is aimed at improving in the country's tax collection; a more transparent system of corporate regulation to avoid tax evasion; and stronger social programs.

During their hour-long meeting, Zoellick commended President Martinelli for Panama's impressive economic growth - currently among the highest in Latin America - with a 2010 Growth Domestic Product (GDP) of 7.5 percent. Forecasts predict its GDP to remain above 7 percent during this year and the next.

The Panamanian head of state and Zoellick, who served as United States Trade Representative from 2001 to 2005, also discussed recent advances in the negotiations of the U.S.-Panama free trade deal. 

In addition, the International Finance Corporation (IFC), the WBG's private sector arm, is committed to supporting Panama's goal of becoming a regional logistics hub through key infrastructure investments, namely a $300 million commitment to the Panama Canal expansion. As of April, IFC's committed investment portfolio in Panama totaled $457.9 million. 

Furthermore, the World Bank and Panama have agreed to a Country Partnership Strategy (CPS) for the 2011-2014 period.

The new strategy is centered on creating opportunities for all Panamanians based on the joint activities of both government and private sector and aimed at increasing the country's productive capacity.

It is expected to amount to at least $400 million in lending plus analytical and other knowledge services that are being defined jointly with authorities.

As of this month, the World Bank has invested $236 million in Panama, mainly targeting projects in health, social protection, and rural development.

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