WASHINGTON, December 2, 2007 – The World Bank’s Board of Directors approved yesterday a $75 million loan for Panama to support the Government’s public finance management and reform program. 
This is the first IBRD operation in a proposed programmatic series of two Development Policy Loans (DPLs), which build upon the fiscal year 2007 Public Finance and Institutional DPL.
“The operation will support selected elements of the Government of Panama's Strategic Vision, helping the Government advance on development indicators which it has set for itself,” said Jessica Poppele, Acting Country Director for Central America.
The actions supported by the First Competitiveness and Public Financial Management Development Policy Loan (DPL) series are expected to enhance private sector competitiveness and public financial management, with a view of improving public sector efficiency and effectiveness in a fiscally sustainable fashion, thus influencing the country’s enabling environment for private sector development.
The DPL series will also contribute to fiscal stabilization and efficient spending by helping diversify external sources of finance and obtain better financial terms. As described in the Government’s Strategic Vision document, this DPL series focuses on actions aimed at:
• Promoting broad-based growth through the enhancement of private sector competitiveness, by helping to reduce bureaucratic red tape, improving training policies, and increasing investments in innovation.
• Consolidating fiscal sustainability, transparency and efficiency through the modernization of public financial management systems for revenue, debt, fiscal reporting, and public procurement.
“The operation will support selected elements of the Government of Panama's Strategic Vision, helping the Government advance on development indicators which it has set for itself,” said Jessica Poppele, Acting Country Director for Central America.
The actions supported by the First Competitiveness and Public Financial Management Development Policy Loan (DPL) series are expected to enhance private sector competitiveness and public financial management, with a view of improving public sector efficiency and effectiveness in a fiscally sustainable fashion, thus influencing the country’s enabling environment for private sector development.
The DPL series will also contribute to fiscal stabilization and efficient spending by helping diversify external sources of finance and obtain better financial terms. As described in the Government’s Strategic Vision document, this DPL series focuses on actions aimed at:
• Promoting broad-based growth through the enhancement of private sector competitiveness, by helping to reduce bureaucratic red tape, improving training policies, and increasing investments in innovation.
• Consolidating fiscal sustainability, transparency and efficiency through the modernization of public financial management systems for revenue, debt, fiscal reporting, and public procurement.
“This operation kicks-off the new Panama-World Bank Country Partnership Strategy (CPS),” explained Frederic de Dinechin Country Representative for Panama. “The CPS includes a package of activities that support various elements of the Government's Strategic Vision which aims to promote broad-based economic growth and establish modern public financial management systems and institutions within the overall goal of reducing poverty and inequality,” he added. The $75 million fixed-spread loan is repayable in 18 years and includes a two-year grace period.
No comments:
Post a Comment