Panama Quake Rebuild Gets 2 Trusts

ECONOMY · PANAMA

The Panama quake rebuild will be paid for through two new trusts, one public and one run by private companies. Economy and Finance Minister Felipe Chapman set out the plan on Tuesday 13 October, as the Cabinet waived fees on repair work.

For US readers, the choice matters because Panama uses the dollar and depends on foreign bond investors. Chapman said the damage is nowhere near the level that would allow the country to draw on its sovereign savings fund.

How the Panama Quake Rebuild Trusts Work

The public trust sits at Banco Nacional de Panamá, the state-owned bank, and the Comptroller General has already endorsed it. Its bank account is open, Chapman told reporters at the presidential palace, La Prensa and Crítica reported.

Its first money will be grants from multilateral lenders such as CAF, the development bank of Latin America, plus payouts from the state’s catastrophe insurance. Chapman said public money for the emergency will be handled exclusively through this trust, according to La Prensa.

Ministries for public works, housing and education can draw on it, as can the farm marketing agency IMA, which distributes food. Local governments and community boards may also apply, but each request must be justified under the Comptroller’s purchasing rules.

The second trust will sit at Caja de Ahorros, a state savings bank, and will be governed by the private sector. Chapman said many companies had offered cash and building materials, but the government chose not to receive that money directly.

That private fund will pay only to repair, rehabilitate and build homes for families who lost theirs. The ministry also promised a public website showing in real time how each balboa is spent, Panamá América reported.

Why Panama Is Not Tapping Its Savings Fund

The Fondo de Ahorro de Panamá, the country’s sovereign savings fund, can be used for natural disasters only when damage passes about US$450 million. “Our estimate is that this emergency is not even remotely close to that amount,” Chapman said, as quoted by Panamá América.

He added that the Cabinet has authorised up to US$100 million in emergency spending and that the government is far from needing all of it. The ministry also does not plan to ask the National Assembly to suspend the fiscal responsibility law.

That keeps the 2026 deficit target of 3.5% of gross domestic product in place, Chapman said. If grants fall short, Chapman said, the government would consider emergency credit lines on cheaper terms than ordinary borrowing.

The fiscal background is covered in Panama Keeps 3.5% Deficit Cap After Quake. Earlier housing pledges are in Panama Quake Rebuilding Plan Promises 1,300 Homes.

Fee Waivers and the Damage Toll

Cabinet Resolution 132-26, approved on Tuesday, tells the fire service, the water utility IDAAN and the environment and health ministries to waive fees quickly. Municipalities that issue building permits and technical certificates are also covered, Panamá América and Crítica reported.

The waivers apply to repairs and reconstruction of public and private buildings, roads, and water and sanitation works damaged directly by the quake. The government presents the measure as a complement to the national state of emergency declared on Saturday 10 October.

The US Geological Survey measured Friday’s earthquake at magnitude 7.7, while Panamanian authorities and local media have cited 7.5. The most damage has been reported in Veraguas, Los Santos, Herrera, Coclé and Chiriquí, according to the national emergency operations centre COEN.

COEN’s preliminary report on Tuesday counted 11,460 people affected and 27 with minor or moderate injuries, with no deaths or missing people, La Prensa reported. On Wednesday Panamá América reported the first death, a 67-year-old woman from Macaracas in Los Santos who died in hospital of injuries suffered in the quake.

On Wednesday, José Ramón Icaza, the minister who heads the presidency’s goals office, said about 600 public schools were affected and 33 shelters were open. President José Raúl Mulino also ordered five ministers to move to the hardest-hit provinces from Wednesday to oversee aid and repairs.

The ministers are to stay close to hospitals, damaged roads, shelters and communities that need repairs. Minister of the Presidency Juan Carlos Orillac said daily briefings will now be given from Azuero at 5 p.m., Telemetro reported.

What It Means for You

For US investors, the plan signals that Panama wants to cover the disaster with grants and insurance rather than new debt or its savings. Because the dollar is legal tender, donations and spending carry no exchange-rate risk for American donors.

US companies and foreign residents who want to help can look to the private trust at Caja de Ahorros, which will fund housing. Details on how donors can contribute were not part of Tuesday’s announcement.

Owners of damaged private buildings in Azuero towns such as Las Tablas, Chitré and Pedasí, including foreign residents, may benefit from the fee waivers. Vice Minister of Economy Eida Gabriela Sáiz urged residents to report damage on the Panamá Conecta platform so aid can be mapped.

Travellers heading to the Azuero Peninsula should expect road and bridge repairs and should check local closures before driving. Background on the country is in Panama Explained: The Canal, the Economy, the Politics and What to Watch and on our Panama City page.

What Is Not Known

Chapman did not say how much money the public trust holds or how much has come in so far, Crítica noted. The full repair bill is also unknown, as inspections of homes, schools and health centres continue.

It is not yet clear when the private trust at Caja de Ahorros will be formally set up or who will run it. How quickly municipalities apply the fee waivers will decide whether families feel the relief soon.

Frequently Asked Questions

What are Panama’s two earthquake trusts?

One is a public trust at Banco Nacional de Panamá for government spending, funded first by multilateral grants and insurance payouts. The other, at Caja de Ahorros, will be run by the private sector to rebuild homes.

Will Panama use its savings fund for the quake?

No, Economy and Finance Minister Felipe Chapman said damage is far below the roughly US$450 million threshold for using the fund. The government has authorised up to US$100 million in emergency spending instead.

What fees has Panama waived after the earthquake?

Cabinet Resolution 132-26 orders the fire service, the water utility and other agencies to waive fees on quake repairs. It covers public and private buildings, roads and water and sanitation works damaged by the 9 October quake.

How many people were affected by the Panama earthquake?

The national emergency operations centre counted 11,460 people affected and 27 injured in its preliminary report on Tuesday 13 October. On Wednesday a 67-year-old woman from Los Santos was reported as the first death from injuries suffered in the quake.

Can foreigners donate to Panama’s quake recovery?

Companies can expect to give through the private trust at Caja de Ahorros, which will fund housing. The government had not announced how donors can contribute when it unveiled the trust on Tuesday.

Sources: La Prensa (trusts and COEN toll); Panamá América (trust structure); Panamá América (Resolution 132-26); Crítica (savings fund threshold); Crítica (Cabinet decisions); Panamá América (first death); Telemetro (ministers, schools, shelters); US Geological Survey (magnitude) (all accessed 14 October 2026).

Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error

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