Cabinet Council Authorizes a US$350 Million IDB Loan for the Budget and Pensions
The Cabinet Decree enables a credit line with the Inter-American Development Bank tied to a program to improve the Social Security Fund's pension system.
The Cabinet Council, through Cabinet Decree No. 38 published in Official Gazette No. 30400 of November 6, 2025, authorized the execution of Loan Contract No. 6055/OC-PN between the Republic of Panama, represented by the Ministry of Economy and Finance, and the Inter-American Development Bank (IDB), for up to US$350,000,000.
The purpose of the loan is to provide financial support for the General State Budget for the 2025 fiscal year and subsequent years, under a "Program for the Improvement of the Pension System of the Social Security Fund (CSS) in Panama."
Multilateral financing linked to a pension system reform combines budgetary liquidity with a long-term sustainability objective — a central concern for public finances. The specific terms of the program are set out in the contract executed with the IDB.
Sources
- Gaceta Oficial N° 30400 (06/11/2025) — Decreto de Gabinete N° 38 (préstamo BID 6055/OC-PN)