Panama will bank $54m from Europe over the next six years to aid its canal expansion project. A new accord between the EU and the Panama government will guarantee the funds between 2007 and 2013.

According to TradeWinds, news of the agreement came as the EU presented a new programme of cooperation between the union and Central America. The EU cash will join a swelling pot of $428m put forward by European banks to help fund the high-profile canal expansion.