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.



More on this topic

Panama: Boom in Mortgages

July 2015

In April this year the mortgage loan portfolio of the banking system amounted to $12 billion, 15% more than in the same month in 2014.

The growing demand for homes in Panama is the main factor behind the steady growth in mortgage lending, which is expected to continue rising due to the deficit that still exists in the availability of housing.

Credit for Construction Up 13.5% in Panama

October 2013

Up until June 30 the portfolio of construction loans rose to $3.34 billion, $369.1 million more than in the same period in 2012.

Of that total, $136.6 million was used for housing, $490.9 million for commercial shops, $672.4 million for infrastructure and $1.04 million in other buildings, said the Superintendency of Banks of Panama.

The Role of Credit in the Construction Sector

September 2013

In Panama housing loans total $1.121 billion, infrastructure loans $668.5 million and commercial construction loans $466 million.

Added to these is $841 million for additions and remodeling. The figures were revealed by the Superintendency of Banks in Panama (SBP).

Credit has become the key to growth of the construction industry and property development in the country.

Panama Experiences Construction Loan Boom

July 2013

In the last three years loans for the construction sector increased by 427%.

Statistics of the Superintendency of Banks of Panama (SBP) reveal that between January and May 2013, $2.509 billion more has been provided than in 2011, when the amount of loans processed was $587 million.

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