Panamanian Banks Give Extensions to Clients

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.

Tuesday, March 31, 2020

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. Georges Bank, Banesco, Banco Aliado, Credicorp Bank, Caja de Ahorros, Ficohsa, Metro Bank, UniBank and Canal Bank.

See "Covid-19: Outlook for the Financial Sector"

A statement from the Panama Banking Association (ABP) explains that the "... initiative applies for April, May and June 2020, and does not require you to contact your bank. With this measure, our clients will have an automatic extension of their payments, without any surcharge or affectation to their credit references."

The document adds that the banks appeal "... to the responsibility and solidarity of each client, and if possible to make regular payments of their obligations. Payments received by direct discount or by voluntary payment will be applied to their respective loans."

According to CentralAmericaData reports, the impact of the Covid-19 crisis on the financial sector in Central America is expected to be felt mainly in services related to stock brokerage and investment advice, where a decline is expected.

Covid-19: How do the outlook for the banking sector in Panama change?

We prepared for our clients the report "Information System: Covid-19 and Business Outlook" which helps companies to measure the impact that the crisis will have on their activity in the coming months.

Click here to request access to this report.

More on this topic

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.

Credits in Panama: Moratorium Until the End of 2020

May 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.

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.

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.

Bank Credits: Collection of Penalties Prohibited

March 2020

In El Salvador, banks will not be able to charge any kind of penalty to clients who, due to the crisis of the covid-19, fail to pay their credit quotas.

They were approved "Temporary Technical Norms to Face Noncompliance’s and Contractual Obligations" derived from the emergency were approved, which will avoid that, during the validity of the emergency, the credit risk category of Salvadorans is affected, therefore, no penalty will be charged for non payment. With these rules will also allow the granting of credits, consolidation, restructuring and refinancing of debts in favorable conditions for those affected by the COVID-19 pandemic, reported the Central Reserve Bank (BCR).

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