Executive Decree 145 of 2020

Due to the sanitary crisis caused by COVID-19 in Panama, there was a loss of jobs, suspension of contracts and commercial and industrial activities that make it impossible to make timely payments on real estate leasing commitments for personal housing, commercial, professional, industrial or educational use.

That is why Executive Decree 145 establishes measures to overcome these crises. The decree establishes that:

  • All foreclosure and eviction proceedings are suspended for the duration of the state of national emergency. This Decree does not encourage non-payment.
  • The freezing only limits the increase of the monthly bill, while the national emergency lasts, this is not a permission not to pay.
  • Articles 4, 6 and 9 of Executive Decree 145, it is inferred, that the lessee must continue to pay the amount, as long as it has the economic capacity to do so or otherwise, reach a mutual agreement on the accumulated payment.
  • When the state of emergency ends, without the lessor and lessee having reached an agreement for the payment of the arrears, the lessor may appeal to the pertinent jurisdictional instances in order to enforce its rights.
  • This executive order is temporary. According to articles 1 and 2, for its application the decree has a transitory period, meaning, while the state of national emergency lasts, however, according to article 5 its effectiveness would be until two months after the end of the state of national emergency.

To read the complete Executive Order 145 of 2020 click here:

Executive Decree 145 of 2020

Published May 15th, 2020, as Laws on Other by Johana Sum