The government is canceling $651.5 million in preferential interest

President of the Republic, Laurentino Cortizohe signed the Executive Order by which People’s government cancels during fiscal 2024, sum 651.5 million dollars to local banks for preferential interest rates and tax incentives for tax refunds in the Old Town of credit applications validated from January 31, 2024.

The regulation establishes that all tax credits validated as of January 31, 2024 will be paid through public debt securities to mortgagees with debts greater than $5.2 million. Preferred tranches in preferred mortgage loansin the total amount of 626.7 million dollars.

Also, it will be paid through tax credits to mortgage creditors with debts of less than 5.2 million dollars preferential tranches in mortgage loans.

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%, the lowest in all of Latin America, “I believe in Panamanian banking,” he said.

Cortizo indicated that banking was instrumental in the consecutive economic growth the country had in the years 2020, 2021, 2222 and 2023, becoming the leading country in the region.

The president reminded that International Monetary Fund, IMFhe said that although Panama was hit hard by the pandemic, “the economic recovery has been solid.”

On the part of the banking sector, Aimeé Sentman thanked the receptiveness of the administration of President Cortiz Cohen during the pandemic and now, since she understood the importance of banking in the development of the country.