Diputados aprueban en tercer debate el proyecto que establece un nuevo régimen de interés preferencial | La Prensa Panamá

Key Legislative Changes

Panama's National Assembly passed bill No. 207, establishing a new preferential interest rate system for home loans. The bill, approved with 53 votes in favor, 2 abstentions, and no votes against, reduces subsidized rates to save the state an estimated $100 to $150 million annually.

Rate Adjustments

The new law divides the country into two regions. In regions 1 (Panama and Panama Oeste) and 2 (Colon and the rest of the country), there are different tiered rates for home loans of varying amounts. The rates differ based on the loan amount and geographical location of the property.

• Region 1: Offers a 5% subsidized rate for loans up to $50,000, 4.5% for loans up to $80,000 and 3.25% for loans up to $120,000, with varying non-renewable terms.
• Region 2: Offers a 5.5% subsidized rate for loans up to $80,000 and a 3% rate for loans up to $80,000, also with non-renewable terms.

The government initially aimed for a 4.5% rate in region 1's first tier, but the construction sector advocated for a 1% increase, resulting in a 5% rate. The approved law also includes an article requiring banks to evaluate beneficiaries six months prior to adjusting interest rates, which faced some opposition.

Controversy and Key Points

The bill generated controversy; some deputies proposed including second-hand homes in the preferential rate program but were unsuccessful. Debate focused on the intention to return the project to a second debate to eliminate Article 12, which mandates bank evaluations for beneficiaries six months prior to interest rate adjustments, but this attempt failed.