This was expressed this Wednesday, July 22, 2020, by Christian Schneider, financial markets specialist at the IDB, during the Café con La Prensa , who discussed the financing plans proposed by the multilateral bank focused on that sector of the economy.

Previously, it was announced that the first $150 million of a loan granted by the IDB to Panama to support the reactivation of the economy will be executed through a trust managed by the National Bank of Panama (BNP). The state bank will act as the executing agency and the funds may be channeled to the beneficiary MSMEs through the BNP itself or from eligible financial institutions that have their attention in micro and small companies.

According to Schneider the availability of these funds will be made official in the coming weeks. We are in the final stage, he added.

The financial markets specialist called on the interested sectors to prepare and have all the necessary documentation ready.

Schneider highlighted that several countries, including Panama, have already announced this type of intervention. This, seeing the vulnerability of the sector and with the idea of ​​saving the largest number of MSMEs, he pointed out.

In his presentation, the expert highlighted that although Panama represents a highly developed financial sector, the country is among the four nations in the region where MSMEs face greater obstacles when it comes to accessing financing. And, according to World Bank data, the gap in access to financing in this sector reaches 21 billion dollars (prior to the crisis by Covid-19).

According to Martínez Coulouris, the executive director of the Panamanian Microfinance Network (Redpamif), they have 309 advisers, who provide support at the national level. The advisers go to businesses, advise them and put together their financial statements with them, he said.

Martínez Coulouris expressed his concern that the local banks are making microcredits, an issue that they have done in previous practices and it has not worked. He cautioned that this could cause customers to become frustrated by response times.

Given this, he made an invitation to the leaders of local banks to lean on the network's technical assistance programs. In passing, he remarked that accompaniment will be key in guiding entrepreneurs at this stage where they must reinvent themselves.

Martínez Coulouris also highlighted that in current times, the country and businessmen need significant help, such as that offered by the IDB. For this, it is essential that these programs reach the entire country, he added.