Loans in Panama: 90-day Moratorium

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.

Tuesday, April 7, 2020

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.

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

From the National Assembly's statement:

The plenary session of the National Assembly approved in third debate the bill 287, by means of which an extension of 90 days is granted for the payment of obligations in the matter of mortgage, personal and commercial loans to retirees and credit cards, granted by banking, cooperative and financial institutions.
 
The initiative benefits people in the public and private sectors who have been affected in their income by the coronavirus pandemic.
 
These measures include loans to the transport sector and collateral loans; this project also considered the collection of fees for the lease of offices, premises, commercial and housing.
 
The law establishes that, once the moratorium established in this law has expired, creditors, in agreement with the debtor, must agree that the debt that has not been paid will be prorated, to be paid within a period of 24 months, without this entailing the collection of interest, surcharge for late payment or any other payment for administrative expenses, nor affecting their credit reference.
 
The document states that the solidarity bond given to the people who were affected will be at the cost of the basic family basket.

Banking Sector and Covid-19: How to measure the impact on the various sectors?

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More on this topic

Moratorium on credits: Law Enacted in Panama

July 2020

A law was published in the Official Journal establishing a moratorium on loans granted by banks, cooperatives and finance companies, both public and private, until December 31, 2020, for natural and legal persons affected by the pandemic.

The law promulgated on July 1 in the Official Journal, states that the benefits of the moratorium will be available to persons whose employment contract has been suspended or terminated, independent workers and traders whose activity has been affected by the health measures applied by covid-19.

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.

Banks Would Be Forced to Consolidate Debt

April 2020

In Panama, the Assembly approved in third debate a bill that seeks to force banks to consolidate customers' debts, regardless of their credit history.

According to Article 4 of the approved law, "... all credit obligations that the debtor has, regardless of the risk category or default status that these obligations register in the credit history of the interested party, are subject to debt consolidation."

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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