The initiative, known as the "moratorium law" was published in the Official Gazette 29059 of this July 1, 2020. The law establishes a moratorium on loans granted by banks, cooperatives and financiers until next December 31.

Article 1 states that the benefits of the law will be applicable to people affected by the crisis caused by the coronavirus, that is, those whose employment contracts have been suspended or terminated, independent workers and merchants whose activity it has been affected by the sanitary measures established by the Executive Branch.

The law also establishes that people who continue to receive a fixed salary or regular income as a result of their commercial activity, cannot take advantage of the law. Therefore, citizens and companies that want to apply to this moratorium must prove their situation.

To do so, it will be enough to present a sworn statement on simple paper or before a notary public, for natural, legal and independent persons stating the affectation of their income, or letter of dismissal, suspension of employment contract or reduction of working hours, for employees of the public or private sector.

The banks had already announced that they would grant an additional moratorium to the one applied between April and June, and according to the circumstances of each client. Industry representatives had pointed out that passing a law was not necessary as it creates a rigid structure that is difficult to modify. On the contrary, the industry regulator, the Superintendency of Banks of Panama, has the capacity to regulate in a more agile way and with the capacity to respond or correct according to the needs of the market.

In the first phase of the moratorium – without a law – banks had issued more than 1 million loans to both individuals and companies, for a balance of close to $27 billion.