Citi Supports Financial Inclusion in Panama with a Social Trade Loan

Panama - Citi, a financial institution with a 120-year presence in Panama, structured a Social Trade Loan for Banesco Panama to extend productive credits to small and medium enterprises (SMEs) across the country, promoting inclusive economic growth.

The loan marks Citi's first social trade transaction of this type for a Panamanian financial institution and is part of the bank's international commercial loan offering. The transaction will have special emphasis on promoting domestic trade.

The amount approved is USD 20 million, which will go toward giving small businesses better access to financing they can use to expand their operations, contribute to the economy, and create jobs.

"This financial institution trade loan that funds local Social Finance business activity in Panama it's a milestone for us. We are very proud of fostering sustainable economic growth and supporting small and medium enterprise that directly impacts the progress of our country", commented Malcolm Muñoz, Citi Country Officer of Citi Panama.

This transaction supports Citi's Social Finance goal to enable access to basic services and economic opportunities for 15 million low-income households, including 10 million women, in emerging markets and supports Citi's goal to finance and facilitate $1 trillion in sustainable finance by 2030 globally.

"We are excited to announce this transaction with Citibank Panama that will allow us to further support small and medium-sized enterprises (SMEs) in Panama. With this agreement, we can continue expanding our lending program for SMEs, empowering them with the resources they need to thrive and contribute to our local economy. Banesco Panama reaffirms thus its leadership in the Panamanian banking industry and its commitment to supporting the growth and success of SMEs, playing a vital role in fostering entrepreneurship and job creation." commented Alfonso Prieto, CEO of Banesco Panama.

Between 2022 and 2023, Citi closed 50 social finance transactions worth USD ~3 billion to expand access to basic services in underserved communities in Latin America and the Caribbean.

About Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions, and individuals with a broad range of financial products and services.
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