Agreement to extend the moratorium is signed until June 30, 2021
The Panamanian president, Laurentino Cortizo and directors of the Superintendency of Banks of Panama signed an agreement this Thursday, October 22, 2020, by which the moratorium period for the payment of loans is extended until June 30, 2021.
The moratorium law applicable to both banks as well as financial institutions and cooperatives sanctioned by Cortizo last July, established a deadline until December 31, 2020.
Given the expiration of this law, the new banking agreement will take effect on January 1, 2021.
The measure seeks to provide financial relief to people economically affected by the Covid-19 pandemic.
Cortizo explained that people whose income is still affected by the crisis will be able to reschedule with the banks the payment of their obligations.
I am pleased to announce that, addressing the concerns of Panamanians, the Superintendency of Banks today dictates a banking agreement that establishes the extension of the moratorium until June 30, 2021, said Cortizo.
During that period, said the head of state, the banks will not execute the guarantees or affect the credit references of those who have modified their loans.
The modification agreement allows banks and clients to continue making the necessary modifications to maintain a viable and sustainable credit relationship.
The modifications may include the granting of grace periods, depending on the new payment capacity of each client, extensions of the loan maturity term, adjustments to the letter or monthly installment, among other options.
The Presidency stressed that the agreement signed is an additional period of six months, in which banks and clients will be able to agree on new terms and conditions based on their new payment capacity or their current economic situation, and that it should not be understood as debt forgiveness.
Given the expiration of this law, the new banking agreement will take effect on January 1, 2021.
The measure seeks to provide financial relief to people economically affected by the Covid-19 pandemic.
Cortizo explained that people whose income is still affected by the crisis will be able to reschedule with the banks the payment of their obligations.
I am pleased to announce that, addressing the concerns of Panamanians, the Superintendency of Banks today dictates a banking agreement that establishes the extension of the moratorium until June 30, 2021, said Cortizo.
During that period, said the head of state, the banks will not execute the guarantees or affect the credit references of those who have modified their loans.
The modification agreement allows banks and clients to continue making the necessary modifications to maintain a viable and sustainable credit relationship.
The modifications may include the granting of grace periods, depending on the new payment capacity of each client, extensions of the loan maturity term, adjustments to the letter or monthly installment, among other options.
The Presidency stressed that the agreement signed is an additional period of six months, in which banks and clients will be able to agree on new terms and conditions based on their new payment capacity or their current economic situation, and that it should not be understood as debt forgiveness.