The Cabinet Council of Panama approved a bill that modifies the preferential interest regime for mortgage loans and proposes changes in the allocation of housing subsidies. The project aims to prioritize sectors with lower purchasing power and promote transparency in the allocation of subsidies.
The project establishes three preferential segments for mortgage loans, based on the price of the housing. In Preferential Segment No. 1, a maximum subsidized rate of 4.0% is offered for a period of 8 years, for homes ranging from fifty thousand to one hundred twenty thousand balboas. In Preferential Segment No. 2, the maximum rate is 3.5% for 7 years for houses starting from fifty thousand balboas. And for Preferential Segment No. 3, a maximum rate of 3.0% is set for 6 years for homes priced above eighty thousand balboas.
The State will subsidize up to 85% of the rate offered by the financial entity. Beneficiaries of the subsidy must be Panamanian citizens or foreigners with permanent residence in the country. The project will come into effect on January 1, 2026, and will apply only to loans for primary homes whose price does not exceed one hundred twenty thousand balboas, including the value of the land and improvements.
Additionally, the Cabinet Council approved the contracting of companies for the rehabilitation of roads in Western Panama, Veraguas, and Chiriquí. Funds were allocated for two projects: one on the Vía Centenario - Nuevo Emperador for B/.23,207,457.87 and another for the Santiago-David segment for B/.50,150,047.14. These works will have specific execution and maintenance periods, and aim to improve road infrastructure in those regions.
