The government owes BNP $100 million in preferential interest

He government of Laurentino Cortiz He leaves behind a large public debt, not only external, but also local.

Since last year, business associations have been complaining about the government’s debts to the sector, both at the level of contractors and at the level of suppliers.

However, there are also state financial intermediaries to whom the executive power owes, as is the case with National Bank of Panama.

In terms of preferential interest alone, the bank is owed close to $100 million, its manager Javier Carrizo Esquivel admitted.

The official said that they are in talks with the Ministry of Economy and Finance (MEF) to see how to settle this obligation.

National Bank In recent years, it has ventured into mortgage loans for own homes, becoming the fourth bank in balance, behind Banco General, Caja de Ahorros and Banistmo.

In October, he managed a portfolio of $2.214 million, and according to the manager, this year’s results were similar to the previous ones.’

At the beginning of the Government, before the pandemic, the largest part of the debt left by Juan Carlos Varela was settled with an external loan.

The paralysis of the economy has led to the Government seeking money abroad to finance business expenses.

This year, the Panama Canal paid $500 million for the sale of government land, and almost all of that money was used to pay off debts held by the government.

The prospects are uncertain, after the Government announced the reduction of the general budget for next year.

“We’re helping people make their dreams come true, and in housing, more than 6,000 families have gotten their homes, and we’re still maintaining the same preferential rates,” Carrizo said.

In September of this year, the internal public debt amounted to 7.361 million dollars, according to the data of the Administration for Public Financing of the UPCG.

Until October of this year, there was a debt of 802 million dollars with official banks.

From Association of Banks of Panama (ABP) there is concern about debt that the Government mmaintains with banks for this subsidy, which amounts to more than 600 million dollars.

And this year, a new law was passed that extends the validity of preferential interest until the last day of 2025. It is a request of the construction sector, but it is not positive for the banks, because the debt continues to grow.

This is an example of how difficult it is for the Government to fulfill its creditors.

A month ago, Carlos Allen, outgoing president of the Panama Chamber of Construction (Capac)reported that it was not until October, when the transfer of items could be finalized in the House Budget Committee, which is considering the payment of $300 million owed to contractors.

And while they were waiting for these funds, new debts have been piling up since April, the number of which cannot be handled at the moment.

“From April to today, there is a new debt that continues to accumulate. Let’s remember that government contractors are billed monthly and that debt is accumulating month after month,” Allen said.

At the end of 2022, the global government debt to all service providers exceeded $1.4 billion, according to data from the Chamber of Commerce, and is sure to increase this year.