The International Finance Corporation (IFC) is considering offering a $500 million loan to help Panama finance the current canal expansion. The project, which includes adding a third set of locks to the canal, has a current estimated price tag of over $5 billion. The expansion will allow larger ships to pass through the aging American built canal. The canal is a major component of Panama’s economy, directly and indirectly accounting for nearly 19% of the country’s GDP, and 41.2% of its export volume.
The IFC, a member of the World Bank Group, is primarily responsible for providing loans to major private sector projects in developing nations. The group predicts that the Panama Canal expansion will boost Panama’s real GDP by 0.6 – 0.8% at its completion. The IFC’s board of directors is expected to review the loan proposal as early as October this year.
Source:
IFC Mulls $500 Loan For Canal Expansion (Nasdaq.com)
