Payment Suspension: Controversy in Panama

As a result of the economic effects that the outbreak of covid-19 will cause in the National Assembly, a general suspension of the payment of taxes, basic services and bank credits for three months is proposed, but the businessmen think that it is not suitable to generalize the measures.

Thursday, March 19, 2020

Bill No. 390, which proposes the suspension of payments and collections of taxes, social security contributions, mortgage loans, commercial and agricultural loans, is advancing in the National Assembly.

See "Coronavirus: How will it affect business?"

Businessmen in the country have expressed their opposition to the legislative initiative, since generalizing the measure could be counterproductive for the country.

Carlos Berguido, an executive with the Banking Association (ABP), told Prensa.com that "... it is not convenient to take widespread measures that use the same formula for all customers and all banks."

Berguido added that "... You can't work with one shirt as if everyone was the same size, you have to give the banking system the possibility of handling the situation with its clients according to their realities."

According to a statement from the Assembly, the draft also establishes a special price control regime for all those goods and products necessary for hygiene, cleaning of homes and offices, as well as for medicines, both for human beings and animals.

Coronavirus: How do the prospects for the banking sector change in the medium term?

We prepared for our clients the "Information System: Impact Analysis of Covid-19 on Business" that answers these and other questions in times of uncertainty.

¿Busca soluciones de inteligencia comercial para su empresa?

Request the report now









this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Moratorium on Loans: Opposite Criteria in Panama

June 2020

After President Cortizo partially banned the moratorium bill, the National Assembly discussed the initiative in a second debate, which was unnecessary for the Superintendent of Banks, who said that the banks had already implemented the necessary measures.

Despite the fact that on May 4 President Laurentino Cortizo and the representative of the Panamanian Banking Association, Aimee de Grimaldo, signed an agreement to extend the moratorium until December 31, 2020 due to the economic crisis caused by covid-19, the deputies declared themselves in permanent session to discuss the moratorium project (already banned by the president) in second debate in extraordinary sessions from June 15 to 18.

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.

Panama: Proposal to Suspend Tax Payments

March 2020

In view of the emergency arising from the spread of covid-19, a bill was submitted to the Assembly proposing a 90-calendar-day suspension of the payment of municipal and national taxes.

The initiative also establishes the suspension for 90 days of the payment of electricity and drinking water, as well as mortgage and personal loans, among others, reported the National Assembly.

ok