Panama: Construction Loans Up 25%

In March this year the balance of the loan portfolio in the construction sector amounted to $4.692 billion, 25% more than in March 2014.

Tuesday, June 9, 2015

Of the total amount loaned by banks for construction activities, 32% was allocated to housing construction, with a balance of $1.526 million, followed by financing for stores, with 18% of the portfolio ($835 million), and other infrastructure, with 12% ($564 million).

Elisa Suarez Gomez, president of the National Council of Private Enterprise (Conep) told Laestrella.com.pa that "... the growth of the loan portfolio destined to the construction sector is a result of high construction costs and high prices at which homes and commercial premises are currently being sold which results in the increase of the portfolio of mortgage loans and construction projects. "

"... Many difficulties have affected the construction sector, such as the delay in processing and issuing of permits to approve of projects, and the high cost of materials. However, Roderick McGowen, president of the Panamanian Chamber of Construction (CAPAC) said, it is expected that at the end of the year activity will show an increase, although not to double digits, but at similar levels to the growth of the economy in Panama. "


More on this topic

Panama: Construction Sector Uses 10% Less Credit

September 2016

Between January and June this year new loans for construction activities totaled $1.497 billion, 10% less than in the same period in 2015.

Of the $1.497 billion awarded in construction loans, 17% were financing for commercial premises, almost 5% for housing construction, 8% for infrastructure and 37% for other buildings, according to figures from the Superintendency of Banks of Panama.

Construction Credit Up 17% in Panama

June 2016

Three banks account for 70% of total loans granted to the construction sector, whose balance up to March grew by 17% year on year.

The annual increase of 17% is lower than the 25% growth achieved in the loan portfolio for construction between March 2014 and March 2015, reflecting a slowdown in the growth rate of financing commercial construction, housing and infrastructure.

New Building Regulations for Panama

April 2015

Construction companies have presented a draft amendment that was agreed between the various agents in the sector to renew the regulation which is now 20 years old.

From a statement issued by the Panamanian Chamber of Construction (Capac):

The president of the Panamanian Chamber of Construction (CAPAC), Roderick McGowen, gave the Mayor of the District of Panama, Jose Blandon, a proposal to amend Agreement No.

Panama: $5 billion in Construction Works

September 2014

The union of construction companies has estimated at the close of 2014 that investments made during the year on construction projects in the country will be worth about $5.6 billion.

McGowen Roderick, president of the Panamanian Chamber of Construction (CAPAC), said during the inauguration of the construction fair CAPAC Expo, "...

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