As a result of the spread of the COVID-19 coronavirus and in line with global measures, the government of Panama decreed a State of National Emergency to adopt actions that facilitate resource against the spread of the virus in Panamanian territory, impacting the following:

1. Health:

Decree 472 has just been adopted which includes health measures linked to the pandemic such as:

  • Suspends all events that involve crowding, except private events of less than 50 people.
  • Suspend cruisers, mini-cruises and any ships from at-risk countries.
  • Mandatory 14-day quarantine is ordered for affected persons
  • Official visits to and from Panama are suspended.

2. Business:

To avoid speculation and unjustified price increases, this afternoon it was issued Decreed 114 by which:

  • Eliminate hoarding by limiting the number of basic articles that everyone can acquire;
  • For cleaning, hygiene items and Vitamin C it is set -for 3 months- the maximum gross margin of 23% throughout the sales chain.
  • Agile mechanisms for obtaining Sanitary Registries;
  • Zero Tariff for importing priority products;
  • Purchase of 20 million dollars in meat and grains in support of national producers.

3. Tax regime:

Defer the payment of taxes, fees and charges to employers subject to the commitment of not reducing the existing workforce.

4. Labor regime:

  • Decree 71 was issued today allowing companies to reduce the working hours for which an agreement with all workers must be signed;
  • Remote work is encouraged to prevent contagion.

5. Banking regime

Temporary measures that allow the banking sector to have more liquidity to stimulate credit facilities to support the private sector.

Have an additional 1,252 million dollars to mitigate the economic impact to the country.

Official actions continue to evolve based on the advances in the health situation of COVID-19, so our recommendation is to remain calm and respect & follow hygiene guidelines issued by official sources. We will be reporting any developments on the matter.