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 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

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.

Bureaucracy Holding Up Social Housing

January 2016

The Panamanian construction union claims that 80 procedures must be undertaken in 22 institutions to launch a social interest residential project, and has proposed creating special regulations for this type of work.

Although the government raised the ceiling rate for affordable housing to $50 thousand, the low profit margins of these projects, coupled with the excessive amount of paperwork and permits that must be obtained to initiate developments are discouraging interest in construction projects of this type. A special legal framework, which requires less paperwork and undertakes processes faster, could minimize bureaucratic costs and increase the incentive to invest in social interest projects.

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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