{"id":14170,"date":"2026-06-23T09:10:00","date_gmt":"2026-06-23T14:10:00","guid":{"rendered":"https:\/\/expat-times.com\/panama\/?p=14170"},"modified":"2026-06-22T20:33:39","modified_gmt":"2026-06-23T01:33:39","slug":"panama-city-halts-27-2-million-multibank-loan-deal","status":"publish","type":"post","link":"https:\/\/expat-times.com\/panama\/business-economy\/panama-city-halts-27-2-million-multibank-loan-deal\/","title":{"rendered":"Panama City Halts $27.2 Million Multibank Loan Deal"},"content":{"rendered":"

Panama City<\/strong> Hall has officially canceled a $27.2 million loan process with Multibank Inc. Mayor Mayer Mizrachi signed Resolution No. 009-2026 on June 16. The decision halts a financial operation designed to settle a debt stemming from a tax collection contract signed nearly two decades ago.<\/p>\n

The municipality originally sought the financing to refinance obligations tied to Contract No. 024-2006. That agreement involved the management of collections for Municipal tax collection contract<\/a> services. Treasury officials recommended suspending the process after meetings with public financing experts from the Ministry of Economy and Finance Panama<\/a>.<\/p>\n

\"1612px
Mayer Mizrachi by Gage Skidmore, CC BY-SA 3.0, https:\/\/commons.wikimedia.org\/w\/index.php?curid=166435817<\/figcaption><\/figure>\n

Government Analysis Led to Better Offer<\/h2>\n

The Treasury Department suggested evaluating credit alternatives with state entities. That analysis opened the door for better financial terms. The Caja de Ahorros Panama<\/a> subsequently presented a proposal the municipality deemed more favorable and convenient.<\/p>\n

Multibank had offered a loan at 7.25% interest with a 45-month term and quarterly payments. The original plan would have transformed the contractual debt into a medium-term credit obligation. But the city determined the state bank’s proposal offered superior conditions for public finances.<\/p>\n

The cancellation responds to criteria of economy, efficiency and good administration of public resources, the resolution states. [Translated from Spanish]<\/p><\/blockquote>\n

The outstanding debt of $27.2 million accumulated over several municipal administrations. A 2025 technical report from the Treasury Department described these as recognized obligations still in force. Much of the debt predates the current administration entirely.<\/p>\n

\"caja
by caja de ahorros<\/figcaption><\/figure>\n

Debt Originated From Tax Collection Contract<\/h2>\n

Contract No. 024-2006 governed the collection of municipal taxes. Over nearly two decades, unpaid invoices piled up. The municipality acknowledged these as valid debts requiring resolution.<\/p>\n

Multibank served as both creditor and potential financier. City officials initially considered this arrangement the most expedient path forward. The direct contracting procedure was published on PanamaCompra in June 2025.<\/p>\n

That process has now been terminated. The resolution specifically ends the exceptional contracting procedure. City officials emphasized the decision reflects sound financial management principles.<\/p>\n

The move aligns with recommendations from the Ministry of Economy and Finance. Their public financing team suggested exploring credit options with state institutions. That guidance ultimately led the city to the Caja de Ahorros proposal.<\/p>\n

Specific terms of the new offer have not been disclosed publicly. The municipality stated only that the conditions proved more advantageous than Multibank’s proposal. The 7.25% interest rate and 45-month repayment schedule from Multibank<\/strong> are now off the table.<\/p>\n

\"multibank
multibank logo<\/figcaption><\/figure>\n

Mayor Mizrachi’s administration has made fiscal responsibility a priority. This decision represents a concrete step toward that goal. The cancellation saves the city from potentially less favorable financing terms.<\/p>\n

The original debt stems from obligations the city acknowledges as legitimate. Multiple administrations allowed these payments to accumulate. The current leadership is now seeking the most cost-effective resolution possible.<\/p>\n

State banks often offer lower interest rates than private institutions. The Caja de Ahorros proposal likely reflects this advantage. Panama City<\/strong> stands to benefit from reduced borrowing costs over the loan’s lifetime.<\/p>\n

The resolution cites sound administration of public resources as the basis for cancellation. City officials believe this decision serves the public interest. Taxpayers will ultimately bear less financial burden under the new arrangement.<\/p>\n

Panama City<\/strong> Hall continues to address its inherited financial obligations. This loan cancellation marks one step in a broader fiscal strategy. The municipality is working to stabilize its finances while maintaining essential services.<\/p>\n

\"panama
panama banking<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

Panama City Hall has officially canceled a $27.2 million loan process with Multibank Inc. Mayor Mayer Mizrachi signed Resolution No. 009-2026 on June 16. The decision halts a financial operation designed to settle a debt stemming from a tax collection contract signed nearly two decades ago. The municipality originally sought the financing to refinance obligations<\/p>\n","protected":false},"author":1,"featured_media":8810,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sitemap_exclude":false,"_sitemap_priority":"","_sitemap_frequency":"","footnotes":""},"categories":[30,29],"tags":[4949,4950,4952,215,4951],"class_list":["post-14170","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business-economy","category-politics-government","tag-loan-cancellation","tag-multibank","tag-multibank-loan","tag-panama-city","tag-panama-city-loan-cancellation"],"_links":{"self":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts\/14170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/comments?post=14170"}],"version-history":[{"count":1,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts\/14170\/revisions"}],"predecessor-version":[{"id":14171,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/posts\/14170\/revisions\/14171"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/media\/8810"}],"wp:attachment":[{"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/media?parent=14170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/categories?post=14170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/expat-times.com\/panama\/wp-json\/wp\/v2\/tags?post=14170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}