Suspension of contracts, uncertainty about the economic future and reduction of salaries, are some of the factors that have affected the banks in Panama to place fewer loans in this context of health crisis.
The amount of new loans granted by Panamanian banks was $589 million during May this year, a 26% reduction compared to what was reported in April 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.
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.
The Superintendency of Banks in Panama has reported that consumer loans amounted to $5.16 billion with four banks hogging 54% of the total.
The four banks holding 54.6% of the personal loans are la Caja de Ahorros, Banco Nacional, Banistmo and Banco General.
Estrategiaynegocios.net reports that "... In first place is Banco General, with 16.7%, managing $860.6 million; second is Banco Nacional, with 15.2%, managing $781.8 million; Banistmo, with a 13.3% market share, has an equivalent of $679.1 million and Caja de Ahorros, with 9.5% has a balance of personal loans of $492.5 million. "
At the end of 2013 the balance of these loans in the banking system exceeded $10 billion, representing growth of 30% in the last three years.
The increase in the real income of households, the Preferred Interest Act and the increased demand for housing in the medium / high cost category, have strengthened the portfolio of mortgage loans in the country, with the balance of this portfolio up to March this year standing at $10.296 billion, $9.041 billion for homeownership loans and $1.254 billion for commercial premises.
Between January and November 2013 credit to the private sector increased by 14% compared to the same period in 2012.
Personal consumption and trade were the sectors that experienced the largest growth in the period under review, beating construction loans and mortgages. Overall, the banking system awarded $24,815,000 in loans to the private sector.
The portfolio of loans granted through credit cards grew by 18% between November 2012 and November 2013.
Up until November 2013, the balance of active cards reached a total of $1.207 billion, while in the same period of 2012 it was $1.021 billion, representing an increase of 18% , according to statistics from the Superintendency of Banks of Panama (SBP).
Up until August three banking entities with microfinance licenses granted loans worth $154.17 million to micro and small businesses.
Capital.com.pa reports that "statistics from the Superintendency of Banks in Panama up to August 2013 indicate that Banco Delta leads the credit portfolios, with 72.24% of the total. Its followers are MiBanco, with 17.12% and Banco G & T Continental, with 10.64% ... ".
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.
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. Loans for interim housing are the largest amount reported at $1.121 billion.
At the end of March domestic credit amounted to $34.338 billion, surpassing by 16% the figure for the same period in 2012.
"The commercial sector claimed the most credit, with a portfolio of $10.2622 billion (22.8%), followed by mortgages, whose portfolio totaled $9.521 billion, up 14.4% from a year earlier" , reported Prensa.com.
"The third most important activity was consumption, with a portfolio of $6.4063 billion, 10.5% more than the previous year."
In March the balance of new bank loans reached $34.339 billion, which is $4.729 billion more than earned in the same period of 2012, when the total was $29.61 billion.
Figures from the Superintendency of Banks in Panama (SBP), reveal that most of the growth in lending balances is in the private sector, with $4.3329 billion, while the public sector only received $396 million.
Analysis has been conducted on the composition of the loan portfolio to buy vehicles, one of the fastest growing sectors in recent years.
In the past five years, auto financing in Panama has been increasing, in February Panamanian banks provided loans of this type worth $813 million.
58.6% of these loans were granted for cars worth up to $15,000. According to a survey on the car market conducted by the Directorate of Financial Studies of the Superintendency of Banks, appropriations for the automotive sector in Panama have increased in proportion to the growth of the economy. However, experts believe that although in 2013 sales will grow, they will do so at a rate lower than in previous years.
In Panama, consumer credit closed 2011 with a portfolio worth $5,702.9million, an increase of 8% compared to 2010.
Personal loans reflected an increase of 10% compared to 2010 followed by credit cards with an increase of $71.3 million. Meanwhile, vehicle purchase loans increased by 10%.
"This year the Ministry of Finance projected a lower growth of about 7%.