Credits in Panama: Moratorium Until the End of 2020

The Executive and the banking sector agreed to extend until December 31st of this year the moratorium on credit payments, a measure that applies to mortgages, personal loans, the agricultural sector, commercial, transportation, auto and credit cards.

Tuesday, May 5, 2020

The government also reported that in the context of the covid-19 outbreak, President Cortizo sanctioned Bill 295 which adopts special social measures for the temporary suspension of payment of public services such as electricity, fixed and mobile telephony and Internet.

You may be interested in "Covid-19: Outlook for the Financial Sector"

From the statement of the Presidency of Panama:

May 4th, 2020. Using his constitutional power, the President of the Republic, Laurentino Cortizo Cohen, sanctioned the bill 295 that adopts special social measures for the temporary suspension of the payment of public services such as electric energy, fixed and mobile telephony and Internet.

Acting in the best interests of the economy and the welfare of Panamanians, President Laurentino Cortizo Cohen announced that after four intense negotiation sessions with the Panama Banking Association (ABP), an agreement was reached that substantially improves the conditions proposed by article 2 of bill 287, allowing the moratorium to be extended until 31 December 2020.

The agreement with the banks includes a moratorium until December 31, 2020 for: mortgages (residential loans), personal loans, small and medium enterprises, the agricultural sector, commercial loans, transportation loans, automobile loans and credit cards.

"These measures protect the savings of all Panamanians and allow our banking system to remain in place. It is the most important banking center in the region that maintains 26,000 direct jobs," he said.

He stressed that the bank will be a fundamental ally in the construction of the new normality, from which will come the financing to lift the affected businesses, the resources to boost job creation and reactivate the economy once we have crossed this storm.

The president endorsed Article 6 of Bill 287, which states that the National Public Services Authority must take measures with public service providers so that radio stations can be granted a moratorium on payment for ninety days, which can be extended. In addition, the president said that all subsidies totaling B/.1.6 billion per year will continue to be provided, targeting groups of families in conditions of social vulnerability.

The ones related to the Social Security Fund, Red de Oportunidades, 120 a los 65, Beca Universal, Ángel Guardián, liquid gas, Metro de Panamá, Mi Bus, electricity subsidy, Fondo Solidario de Vivienda, Preferential Interest and water subsidy. Cortizo Cohen said that no Panamanian "is going to be left out of their home.

No one will be evicted while the state of emergency lasts" because all rental fees have been frozen as established in decree 145 of May 1.

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More on this topic

Moratorium on Loans: Opposite Criteria in Panama

June 2020

After President Cortizo partially banned the moratorium bill, the National Assembly discussed the initiative in a second debate, which was unnecessary for the Superintendent of Banks, who said that the banks had already implemented the necessary measures.

Despite the fact that on May 4 President Laurentino Cortizo and the representative of the Panamanian Banking Association, Aimee de Grimaldo, signed an agreement to extend the moratorium until December 31, 2020 due to the economic crisis caused by covid-19, the deputies declared themselves in permanent session to discuss the moratorium project (already banned by the president) in second debate in extraordinary sessions from June 15 to 18.

Credits: Requirements for Moratorium Request

May 2020

Legal or natural persons who apply for the moratorium on loan payments in Panama must prove to the banking institutions that they have been economically affected by the outbreak of covid-19 and that they cannot cancel their quotas.

On May 4, it was announced that the Executive and the banking sector agreed to extend until December 31 of this year the moratorium on loan payments, a measure that applies to mortgages, personal loans, the agricultural and livestock sector, commercial loans, the transportation sector, automobiles and credit cards. However, the banking union clarified that the measures are not automatic.

Loans in Panama: 90-day Moratorium

April 2020

In the third debate, the National Assembly approved a bill that grants debtors a 90-day extension of time for payment of credits granted by banking, cooperative and financial institutions.

According to the law that must be sanctioned or banned by President Cortizo, once the term of the moratorium set forth in this law has expired, creditors, in common agreement with the debtor, must agree on the conditions for the unpaid debt to be prorated, to be paid within 24 months.

Panamanian Banks Give Extensions to Clients

March 2020

In response to the country's health crisis, 15 banks have granted a 90-day extension for their customers to make their personal credit card, home mortgage, vehicle and personal loans.

Until March 31st, the financial institutions that confirmed that had granted the extension to their clients are BAC Credomatic, Banco General, Banistmo, Banco Nacional, Global Bank, Multibank, St.

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