Panama: Boom in Construction Loans

In January 2013, banks granted the construction sector loans worth $2.92 billion, which is $89.6 million more than in January 2012, when the figure was $2.83 billion.

Monday, April 1, 2013

These type of loans, represent 11.45% of the loans granted by the National Banking System, which adds up to a total of $33.5141 billion.

"In January 2013 the housing segment, with $1.12 billion had the most loans received from banks, followed by infrastructure with $607.3 million and commercial premises, with $472.8 million. The segment of "other structures", which does not specify the type of work performed, amounted to $727.3 million," noted an article in Capital.com.pa.

"In January 2012 the segment of housing loans amounted to $1.25 billion, infrastructure had $585.2 million, while commercial property amounted to $439.9 million. Last year other buildings amounted to $558.4 million. "

According to Mario De Diego, Executive Vice President of the Banking Association of Panama (ABP by its initials in Spanish), construction has been helped by the continued development of shopping centers, both in the capital and its suburbs and in other provinces.

De Diego explained that the balance of construction sector loans increased by $164 million or 6% in 2012, however, new loans totaled $367 million, suggesting that there were loans paid off.

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