real estate

More info needed on mortgage law

Bankers, developers and analysts are hopeful that the government's plan to increase the ceiling for preferential mortgage interest rates, but are concerned that a final draft of the law has not been publicized.

Those within the industry say they are taking a "wait and see" approach to the law, which reportedly will increase the ceiling for preferential interst rates from $62,500 to $80,000.

The measure is designed to help homebuyers in Panama's middle class to get preferential rates even as housing prices continue to increase because of speculation and rising construction costs.

Bank officials are warning, though, that some projects have been started under the assumption that the reform will be passed as advertised.

Bankers acknowledge that expanding the opportunities for the middle and lower class to buy their own home is always a positive step.

For his part, Guillermo Quijano of Sucasa, a company that promotes a wide range of properties, said that the measure should help perpetuate Panama's real estate boom, which has created thousands of new jobs and driven the country's economy to record unprecedented levels of growth.

"Raising the ceiling for the preferential interest rate directly helps the Panamanian middle class, improving their quality of life," he said.