In response to the health crisis facing Panama, the sector’s union requested government intervention to suspend rent collections and payment of employer’s fees.
On April 1, 2020, the Association of Restaurants and Related Industries of Panama (ARAP) sent a note to the Presidency of the Republic, in which they requested that given the crisis that has been generated by the outbreak of covid-19, they be granted a moratorium of 6 months or more.
See “Post-Quarantine Consumption Patterns”
In the document sent to President Laurentino Cortizo, they ask for intervention to achieve a six-month postponement of the payment of rent for commercial premises, and of electricity, water, telephone and Internet services.
Domingo de ObaldÃa, president of the Arap, told Panamaamerica.com.pa that “… As businessmen we have accepted the recommendations of a solidarity effort with the collaborators of the sector so that they are sent home with money, which we have done as far as we can, however, with the cessation of operations and the suspension of contracts we are concerned about our collaborators and their families.”
The article adds that “… Employers also request a minimum bonus of $400.00 per month for food and medicine to be given to citizens whose contracts have been suspended.”
According to reports from CentralAmericaData, it is estimated that when Central American economies relax their restrictive measures and begin to return to normal, demand for food outside the home will decrease by about 7% from the levels reported prior to the crisis.
Covid-19: How are the outlook for food sector companies in Panama changing?
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Source: Panamaamerica.com.pa