This is a huge plus for Panama and a step in the right direction by our new President.

President Cortizo announced the implementation of a plan that contemplates expanding the preferential interest rate for homes with prices of up to $180,000.

During his inauguration, Laurentino Cortizo announced that he will implement a plan to reactivate the construction industry, which includes the extension of the preferential interest in different ranges for housing up to $180,000, the presentation of a real estate leasing bill and exemption from transfer tax for the current inventory of housing, among other actions.

See “Construction Rebound: A Challenge for the New Government”

The announcement was well received by the builders’ guild. In this regard, Hector Ortega, president of the Panamanian Chamber of Construction (Capac), explained to Elcapitalfinanciero.com that “… the proposal to raise the benefits of the Preferential Interest Law for homes whose sale price rises to $180,000 ‘will allow serving an important segment of the population made up of professionals and middle class, who regularly do not receive any type of stimulus or facilities for the purchase of residences’.”

For Miguel De Janón, president of the National Council of Housing Promoters (Convivienda), “… the measures announced by President Cortizo to reactivate the construction sector can have a positive impact on the placement of the high volume of houses that are built and have not been able to be placed in the market, however, he clarified that in the case of the extension of the benefits of the Preferential Interest Law to homes with a market value of up to $180,000, it is necessary to wait to know exactly the scope of the proposed reform to the Law to be able to measure its possible benefits.”

Construction in Panama is not passing its best moment, since at the close of the first quarter of 2019 the cost of new construction, additions and repairs fell 28% compared to the same period in 2018.