Webinar: Labor Law vs COVID-19
16/06/2020Considerations before creating your brand
07/07/2020[vc_row][vc_column][vc_column_text]
Which dictates economic and financial measures to counteract the effects of COVID-19 in the Republic of Panama
Article 1. The benefits established in this Law will only be applicable to persons affected by the economic crisis caused by the COVID-19 pandemic, that is, persons whose employment contract has been suspended or terminated, independent workers and merchants whose activity has been affected by the health measures established by the Executive Branch.
People who continue to receive a fixed salary or regular income from their commercial activity during the declaration of a health emergency will not be eligible for this Law.
Article 2. A moratorium is established on loans granted by banks, cooperatives and financial institutions until December 31, 2020 , for natural and legal persons economically affected by the national state of emergency due to COVID-19. This moratorium also extends to loans granted by cooperatives and financial institutions, both public and private:
- Residential Mortgage Loans
- Personal loans
- Car Loans
- Credit cards
- Loans to small and medium-sized businesses
- Business loans
- Loans to the transport sector
- Loans to the agricultural sector
- Consumer credits
To prove the state of incapacity or insolvency for the payment of the indicated commitments, it will be sufficient to present a sworn statement on plain paper or before a notary public, for natural persons, legal entities and independent persons in which they state the affectation of their income, or a letter of dismissal, suspension of employment contract or reduction of working hours, for employees of the public or private sector.
Article 3. Once the moratorium period established in this Law has expired, the creditors, by mutual agreement with the debtor, must establish the necessary mechanisms so that the client debtor can resume, through refinancing or prorating of commitments, without this entailing the collection of late fees or any other payment in the form of administrative expenses, or affecting his credit reference.
Article 4. The amount of the solidarity bonus that will be received by formal workers whose employment contract has been provisionally suspended or whose formal relationship has been terminated, or informal workers who have been affected by the crisis caused by the COVID-19 pandemic, will be determined by the Executive Branch.
Article 5. The National Authority for Public Services shall adopt measures with public service providers so that national radio stations, within the declaration of the national health emergency, in compliance with their social function of informing the population, may be granted a moratorium on payment for ninety days, renewable.
Once the national health emergency declaration is lifted, the suspended payments to radio stations will be diluted over a period of two years.
Public service providers will not be able to charge additional fees to national radio stations, nor cut off the service they provide, for debts that are declared in arrears.
Article 6. Banking, cooperative and financial entities may not charge fees, increase the interest rates applied, surcharge or any other interest for non-payment, late payment or for any other reason on all credits included in article 2, from March 1 to December 31, 2020. The Superintendency of Banks, the Panamanian Autonomous Cooperative Institute, the Ministry of Commerce and Industry and other competent authorities will be obliged to ensure strict compliance and will apply the established sanctions.
This will apply to all workers whose working hours have been reduced with a decrease in salary, whose employment contract has been suspended or terminated, as well as to natural persons, legal entities or independent contractors who have reduced or closed operations as a result of the COVID-19 pandemic.
Article 7. During the declaration of a national health emergency and up to sixty days after it is lifted, the credit histories of individuals, which are registered by the Panamanian Credit Association, will not be affected.
Article 8. The Executive Branch shall regulate this Law.
Article 9. This Law is of public order and social interest, and will have retroactive effects until March 1, 2020.
Article 10. This Law shall enter into force upon its promulgation.
For questions about these economic measures, please contact us at [email protected].
See the complete list of COVID-19 Regulations established by the Government of Panama at the following link: COVID-19 Regulations.
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