The inclusion of Panama in the grey list of France, as of 2017, could cause an increase in mortgage interest rates, as was stressed by García Jorge Icaza, President of the Chamber of Commerce, Industries and Agriculture of Panama (Cciap).
Interests for mortgage loans in our country are currently between 5.5% and 6.5% of the loan total, depending on the bank where they get it.
The President of the Cciap added that this inclusion could affect the monthly payment of house mortgages, which could also rise for Panamanians.
A situation which, according to some members of real estate sector in Panama, could increase the cost of housing, especially those that are above the preferential interest of $120 thousand dollars.
If this increase occurs, the value of the residential buildings in the country could be impacted, which, according to the Comptroller's Office, fell by 6% in January, from $59 million 923 thousand in the first thirty days of this year to $56 million 311 thousand in January 2015.
Elisa Suárez, Executive Director of the National Council of Housing Promoters (Convivienda), said that one of the consequences which the inclusion of Panama on the grey list of France could have is the rise in interest for mortgage loans.
She added that this inclusion could cause our country to be left without their correspondent banks which give the guarantees to work on something nationally which could definitely raise interest rates.
She stressed that those Panamanians who got their mortgage loans within the range of preferential interest (houses at a cost of up to $120 thousand) are more protected since interests with which they obtained their house may not vary over a period of about 10 years.
Suarez added that those who may be affected are those Panamanians who will acquire houses or are doing paperwork for this, since they will have to pay a higher interest rate which will raise their monthly payments.
José Batista former Vice minister of Housing said that Panama´s inclusion in the grey list of France must avoid at all costs that our country gets a negative rating causing correspondent banks to increase interest.
He stressed that if this happens, if mortgage interests increase, it may also affect the cost of housing that the Panamanian middle class is getting.
He added that the country got a rise of mortgage interests due to the increase that occurred in the rate of interest of 0.2% of the reserve Federal of the United States.
Meanwhile, economist Juan Jované said that in fact that increase in interest of mortgages may occur, but an even worse damage may be caused due to this inclusion in the grey list of France.
He stressed that this could also change the expectations of the people who have money in Panama and will lead them to withdraw their money, which could reduce the reserves of banks thus shrinking credit.
He added that should this contraction take place, there is not only the possibility that the interest rate may raise, but also the volume of credit may be reduced affecting economic activities in the country.
Jované stressed that the largest users of credit in the country are: the trade, mortgage, construction sectors and the personal consumption credit, which would have a negative effect on the Panamanian economy.
He added that the Government must act quickly to this inclusion, because if it does not an increase in mortgage interests will go up referred to by the President of the Cciap.