On March 1, 2024, the Japan International Cooperation Agency (JICA) signed a loan agreement with Global Bank Corporation (“GB”), a private financial institution in Panama, for up to US$500,000 to improve access to finance for micro, small, and medium enterprises (“MSME”), promote the economic empowerment of women, and promote agriculture in the country. The loan agreement is the first overseas loan for Panama. This project is the first overseas investment and loan for Panama.
Income inequality is significant in Panama, and to correct this disparity, income growth through the promotion of MSME and increased employment is expected. In particular, support for the agricultural sector in rural areas, which accounts for approximately 40% of the poor, is essential to correcting the income disparity between regions. On the other hand, MSMEs face financial constraints due to lack of access to information and inability to obtain sufficient bank loans due to lack of information on MSMEs and perception of high risk in lending by lenders. In addition, ensuring access to financing for women-owned MSMEs is a key challenge.
GB is a leading local bank in Panama that offers a wide range of financial products and services to its clients and has been a leader in supporting MSMEs, agricultural workers, and women for 30 years. GB is particularly strong in lending to agriculture and women, providing technical assistance and financial products tailored to the needs of the agricultural sector and women clients to support their businesses.
© Source JICA