Panama Can Access US$300 Million From IDB to Support Earthquake Relief and Recovery

The US$300 million is available through Panama’s existing Contingent Credit Facility for Natural Disaster and Public Health Emergencies with the IDB, which includes earthquake coverage.

Panama will be able to access up to US$300 million from the Inter-American Development Bank Group (IDB Group) following the October 9 earthquake, giving the government a source of financing to help respond to the disaster and support recovery. A separate grant of up to US$500,000 is available for urgent humanitarian needs and technical work that can guide the response. For affected communities, the support connects two pressing demands: getting assistance to people who need it and understanding what recovery will require.

An Existing Credit Facility Offers Emergency Financing

The US$300 million is available through Panama's existing Contingent Credit Facility for Natural Disaster and Public Health Emergencies with the IDB, which includes earthquake coverage. This arrangement gives the country access to emergency credit under a facility established before the disaster, providing a financial resource for the government's response.

The announcement describes financing Panama can access, rather than confirming that the full amount has already been disbursed, and the credit is separate from the smaller grant that does not have to be repaid.

US$500,000 Grant Supports Relief and Recovery Assessments

The non-reimbursable funding will come through an emergency technical cooperation grant, with permitted uses covering humanitarian assistance for affected communities, assessments of damage and losses, and analyses of recovery needs. These assessments can help authorities understand the consequences of the earthquake and decide where support is most needed, giving government planning a clearer basis as the response develops. The grant brings assistance for people's immediate needs and technical support into the same package, recognising that recovery decisions depend on a reliable understanding of conditions in affected areas.

IDB Pledges Support Beyond the Immediate Response

IDB Group President Ilan Goldfajn placed affected families at the centre of the institution's commitment, saying: "The IDB Group stands with the people of Panama during this difficult time. These resources will enable the Government to quickly assist affected families and plan for recovery. We will continue working hand in hand with the authorities throughout every stage of the response."

The credit facility and emergency grant give the group ways to support immediate relief, humanitarian and technical assistance, and medium-term recovery and reconstruction. That approach reflects the commitment of its Ready and Resilient in the Americas regional program to strengthen resilience to disasters, connecting the urgent response in Panama with the broader task of preparing communities for future emergencies.