Panama secures up to $300 million in IDB financing and $500,000 grant for earthquake response

Panama will be able to access up to US$300 million in financing from the Inter-American Development Bank Group (IADB) along with up to US$500,000 in non-reimbursable resources to respond to the October 9 earthquake, according to a press release issued on October 10, 2026. The funds are intended to support humanitarian assistance, damage assessments, and priority response spending by the Government. The announcement was made from Panama City. It covers the most urgent needs of the affected population. The package combines contingent credit with an emergency grant.

The US$300 million support comes from the Contingent Credit Facility for Natural Disaster and Public Health Emergencies that Panama has with the IDB. This facility includes coverage for earthquakes. The non-reimbursable resources are provided through an emergency technical cooperation grant. Together, these instruments form the IDB Group’s immediate financial response to the disaster. They were activated following the October 9 event.

The grant resources may be used for humanitarian assistance to affected communities. They may also be directed to damage and loss assessments. In addition, the funds can support recovery needs analyses to help guide government decision-making. These uses were defined by the IDB Group as part of the emergency package. The grant is designed to address the most pressing demands on the ground.

“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,” said IDB Group President Ilan Goldfajn.

His statement framed the institution’s role as a long-term partner. It also underlined coordination with national authorities.

Together, these instruments enable the IDB Group to support Panama throughout all phases of the disaster, including the immediate response, humanitarian and technical assistance, and medium-term recovery and reconstruction. The approach is aligned with the commitment of the Ready and Resilient in the Americas regional program. That program aims to strengthen the region’s resilience to disasters. The combined package covers both urgent needs and longer-term recovery. It consolidates the IDB Group’s response to the earthquake in Panama.