Press Release

First Ever Withdrawal from the Fondo de Ahorro de Panama as a Result of the State of Emergency Declaration due to the COVID-19 Pandemic

Panama | July 20, 2020

The Board of Directors of the Fondo de Ahorro de Panama (hereinafter, “FAP” or “Fund”), pledges its commitment to help support the country and the Administration in their fight against the economic consequences of the COVID-19 pandemic.

For this reason, and based on the withdrawal request from the Ministry of Economy and Finance (the “MOF”) and the pertinent legal and financial considerations, the FAP’s Board of Directors approved on July 16, 2020, the transfer of USD 85 million from the Fund to the National Treasury.

According to the MOF’s withdrawal request, the foregoing funds will be utilized as follows:

  • USD 5 million – to support the programs in execution of the Ministry of Health regarding the purchase of medical supplies and equipment, medicines, among others; and

  • USD 80 million – to provide fund support to the Administration’s “Solidarity Fund for Housing,” a program designed to increase affordable housing for low-income earners.

This withdrawal request is carried out in accordance with article 5 of Law 38 of 2012, which creates the FAP and authorizes that the FAP’s funds may be used during a state of emergency declared by the Cabinet´s Council (said declaration is contained under Cabinet Resolution No. 11 of march 13, 2020 in Spanish only).

Anamae Maduro de Ardito Barletta, Chair of the Fund’s Board stated: “We are very pleased that the FAP will, for the first time, execute one of its principal mandates for which it was created, and provide support to the country in the face of this difficult economic and health crisis resulting from the COVID-19 pandemic.”

Abdiel A. Santiago M., Secretary of the Fund commented that “since its creation, the FAP has prudently invested its assets to ensure their availability in times of emergencies such as the one we are currently experiencing; we hope to continue working jointly with the government’s authorities to support the country during this crisis and after it passes.”

About the Fondo de Ahorro de Panama

The Fund was created by Law 38 of June 5, 2012, whose main objectives are:

  1. Establish a long-term savings mechanism for the Panamanian State; and

  2. Establish a stabilization mechanism in case of a state of emergency (declared by the Cabinet’s Council) and economic slowdowns.

Contact: Administration, +507-394-5776/5706, administrador@fondoahorropanama.com

For additional information visit www.fondoahorropanama.com


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