Panama’s state-owned Banco Nacional has formalized a financing agreement of up to $500 million with CAF, creating a major new source of credit for agriculture and small businesses.
The agreement was completed on September 11, nearly nine months after CAF’s board approved the operation on December 16, 2025. CAF described it as the largest loan it has made to a bank in Panama.
Half of the financing is designated for agriculture and agribusiness, particularly in rural areas. The remaining funds are intended for small and medium-sized enterprises across other sectors, with additional emphasis on businesses led by women.
CAF estimates that the credit line could benefit more than 3,300 businesses, including at least 1,000 women-led enterprises. Eligible financing may also include energy-efficiency projects, renewable energy and other investments classified as environmentally sustainable.
The operation comes as Panama’s agricultural sector faces heightened uncertainty from El Niño. Authorities have warned that reduced rainfall and higher temperatures could continue into early 2027, affecting water availability, crop production and hydroelectric generation.
Banco Nacional is one of Panama’s two state-owned banks and is an important provider of agricultural and development credit. The CAF funds will be channelled through the bank to qualifying borrowers rather than transferred directly to businesses by the government or the regional development institution.
Important financial and operational details have not yet been made public. Reports on the signing did not specify the loan’s interest rate, repayment period or disbursement schedule. Banco Nacional has also not announced the eligibility requirements, interest rates or application timetable that will apply to individual borrowers.
The agreement therefore establishes a substantial financing facility, but its eventual economic impact will depend on how quickly the funds are deployed and whether smaller rural businesses can meet the bank’s lending conditions.
