Panama retains one of the highest economic growth levels in Latin America, but that doesn’t mean the country is immune to the global financial crisis. The Republic of Panama has created a new fund that is aimed to help ease the credit crunch.

The government of Panama has announced it will borrow $1.1-billion to create a fund that officials hope will ease credit issues and boost investment in the country. President of the Republic, Martin Torrijos says the fund will allow Panamanians to acquire low cost loans to buy homes and expand businesses.

The fund is being financed by the Inter-American Development Bank, the Andean Development Corporation and the National Bank of Panama. The fund will be overseen by the National bank.

Panama’s economy expanded 9.2% in 2008, but dropped more than 2% over 2007. The global economic downturn has effected Panama less than many other countries, but a drop in international investors and tourist has been felt lately in Panama.

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Filed under: News on January 22nd, 2009