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.
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From the statement of the Presidency of Panama:
May 4th, 2020. Using his constitutional power, the President of the Republic, Laurentino Cortizo Cohen, sanctioned the bill 295 that adopts special social measures for the temporary suspension of the payment of public services such as electric energy, fixed and mobile telephony and Internet.
Acting in the best interests of the economy and the welfare of Panamanians, President Laurentino Cortizo Cohen announced that after four intense negotiation sessions with the Panama Banking Association (ABP), an agreement was reached that substantially improves the conditions proposed by article 2 of bill 287, allowing the moratorium to be extended until 31 December 2020.
The agreement with the banks includes a moratorium until December 31, 2020 for: mortgages (residential loans), personal loans, small and medium enterprises, the agricultural sector, commercial loans, transportation loans, automobile loans and credit cards.
“These measures protect the savings of all Panamanians and allow our banking system to remain in place. It is the most important banking center in the region that maintains 26,000 direct jobs,” he said.
He stressed that the bank will be a fundamental ally in the construction of the new normality, from which will come the financing to lift the affected businesses, the resources to boost job creation and reactivate the economy once we have crossed this storm.
The president endorsed Article 6 of Bill 287, which states that the National Public Services Authority must take measures with public service providers so that radio stations can be granted a moratorium on payment for ninety days, which can be extended. In addition, the president said that all subsidies totaling B/.1.6 billion per year will continue to be provided, targeting groups of families in conditions of social vulnerability.
The ones related to the Social Security Fund, Red de Oportunidades, 120 a los 65, Beca Universal, Ángel Guardián, liquid gas, Metro de Panamá, Mi Bus, electricity subsidy, Fondo Solidario de Vivienda, Preferential Interest and water subsidy. Cortizo Cohen said that no Panamanian “is going to be left out of their home.
No one will be evicted while the state of emergency lasts” because all rental fees have been frozen as established in decree 145 of May 1.
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Overall Panama is joining the more intelligent set of actions by countries in many things this is one of them. It is really a win for everyone including the banks who are able to keep their money working and earning during this time when there are few new loans going out and at the same time give the needed time to the debtors so that there is not a lot of foreclosures and failures which harm everyone the banks and the creditors. Good to see Panama doing a lot of the right thing.