President Laurentino Cortizo announced an agreement with the banks that is very advantageous for the population and said that he partially vetoed three bills that contain a moratorium on payments to private schools, school buses, municipalities and the CSS, in addition to the price control of some products.

Laurentino Cortizo announced that it has been agreed with the National Banking Association to freeze loans until December 31, seven months more than proposed by law 287.

And he confirmed that he partially vetoed three projects, including 287, which will be discussed again in special sessions.

Although it was not specified which articles were vetoed, 287 proposes the suspension for 90 extendable days of the obligations and terms on national and municipal tax commitments and the payment and withholding of worker-employer contributions from the Social Security Fund.

This project also proposes the suspension, for the same term, of the payment of the monthly fees for private schools and private school transportation. In addition, it establishes a price control on hygiene, cleaning and medicine.

However, some warn that this measure does not mean that Panamanians should not assume their responsibilities.

Arturo Fletcher, from the National Council of Private Enterprise (Conep), said that this is only a palliative measure, and Panamanians should not see it only from banking point of view, but as a set of measures by the Executive and the National Assembly to counter the crisis by COVID-19 .

He added that everyone who can pay must do so, because this will help create a balance for the banking system.

The agricultural sector has benefited from this agreement and the leader of the producers, Augusto Jiménez, said that his colleagues have to keep in mind that this is not a waiver.

It is necessary that the commitments be assumed by the Panamanians when they can, since to the extent that they are not assumed, their mortgage guarantee could be put at risk, Jiménez said .

For producers who work with agricultural banks, Jiménez pointed out, perhaps they feel a little relaxed, because interests are more flexible, but responsibilities must also be faced.

Aimeé Sentmat, president of the Panama Banking Association, indicated that this measure does not apply automatically. The goal is to help clients affected by the pandemic. Therefore, she suggested to those who have loans, should call the banks to find solutions to their payments, and maybe even longer term.

Those who are still in active employment, and have not seen their income decline, should continue to pay, not only to banks, but to everyone [they have payment obligations to], she added.

Sentmat reminded that financial resources are finite and that there is no country that can survive infinitely on relief measures. People not affected by the special situation should take responsibility.

The Government's agreement with banks also indicates that during the rest of this year, no Panamanian affected by COVID-19 will lose their home.

In addition, residential mortgage guarantees will not be executed for affected clients, whose loans have been carried over due to damages related to the pandemic.

On the other hand, the deputy of the ruling Democratic Revolutionary Party, Leandro Ávila, said that Cortizo had to take into account bill 295 because it was jointly presented by more than 40 deputies, almost all of the PRD, and others from the opposition.

This would allow Panamanians settle those expenses that are important at this time and are not worried about the cuts.

Cortizo also endorsed article 6 of draft law 287, which provides that the National Authority of Public Services (ASEP) will adopt measures with public service providers so that radio stations are granted a moratorium on the payment of their obligations for 90 extendable days .

Likewise, Cortizo said that all state subsidies, which total $1.6 billion annually, will continue to be met.

These include the Social Security Fund, the Opportunity Network, 120 to 65, Universal Scholarship, Ángel Guardián, the Panama Metro passage and the potable water passage .