Banks receive $651.5 million in preferential interest

The President of the Republic, Laurentino Cortizo, signed this Wednesday an executive order by which the National Government cancels, during the fiscal period 2024, the amount of 651.5 million dollars to local banks as preferential interests and tax benefits for tax renovations in the Old Town, from credit applications validated on January 31, 2024.

The decree, signed by President Cortizo Cohen and the Minister of Economy and Finance, Héctor Alexander, establishes that all tax credits validated from January 31, 2024 will be paid through public debt securities, to mortgagees with debts of more than USD 5.2 million privileged tranche of preferential mortgage loans, in the total amount of 626.7 million dollars.

The regulation also indicates that it will be paid through tax credits to mortgagees with debts of less than $5.2 million in preferential tranches of mortgage loans.

During the meeting, the President and the Minister of Economy and Finance explained to the representatives banking sector methodology payments and next steps, how the state will face the obligations of paying preferential interest and tax incentives for the reconstruction of the Old Town.

Cortizo thanked the banking sector for always being there during his administration.

“In 2022, the economic growth was 10.8 percent, without you we would not have been able to get there, it is one of the biggest growths in the region”, he pointed out.

He added that inflation is currently 1.2 percent, the lowest in all of Latin America. “I believe in Panamanian banking,” he added.

He emphasized that banking is key to the consecutive economic growth that the country had in 2020, 2021, 2222 and 2023, becoming the leading country in the region.

The president recalled that the International Monetary Fund (IMF) said that, although Panama was severely affected by the pandemic, “the economic recovery was solid.”

On behalf of the banking sector, Aimeé Sentman thanked for the receptiveness he had during pandemic and currently the administration of President Cortiz since he realized the importance of banking in the development of the country.