Panama President Mulino Approves the Preferential Interest Law and Appoints Two New Judges

The Cabinet Council announced that President José Raúl Mulino approved Bill No. 341, which modifies articles of Law 468 of 2025, which replaces Law 3 of 1985, establishing a preferential interest rate regime on certain mortgage loans and issuing other provisions.  Housing Minister Jaime Jované announced that it will come into effect on January 1, 2026. 

He emphasized that the amendment covers the housing subsidy of $80,000 to $120,000, with a seven-year term and a maximum rate of 4 percent.  “In subsidies, preferential bracket number 3, which covers homes between $80,000 and $120,000, will have a subsidy term of 7 years, and its maximum rate will be 4%. This modification increases the term from 5 to 7 years and the subsidy rate from 3.5% to 4%.  The same applies to both Regions 1 and 2,” the minister emphasized.   He announced that it will come into effect on January 1, 2026.  He emphasized that the amendment covers the housing subsidy of $80,000 to $120,000, with a seven-year term and a maximum rate of 4 percent.

“In subsidies, preferential bracket number 3, which covers homes between $80,000 and $120,000, will have a subsidy term of 7 years, and its maximum rate will be 4%. This modification increases the term from 5 to 7 years and the subsidy rate from 3.5% to 4%. The same applies to both Regions 1 and 2,” the minister emphasized.  “They have greater coverage in terms of subsidies and time, increasing the years of coverage and the subsidy on these mortgages,” Jované added.  He explained that, upon entry into force, the state subsidy will be granted in accordance with preferential tiers, depending on the purchase price of the home and its location. Region 1 will be considered for homes located in the provinces of Panama and Panama Oeste, and Region 2 for homes located in the province of Colón and the rest of the country, with a maximum subsidized rate of 4%, for a non-renewable term of seven years.  Law 481, of September 9, 2025, modifies articles of Law 468 of 2025, which replaces Law 3 of 1985, which establishes a preferential interest rate regime for certain mortgage loans.

Appointments

Likewise, the Cabinet Council approved the appointment of two new justices to the Supreme Court of Justice (SCJ).  Gisela del Carmen Agurto Ayala will be a justice of the Third Chamber of Administrative and Labor Litigation of the SCJ, replacing Justice Cecilio Cedalise Riquelme , whose term has expired.  Carlos Ernesto Villalobos Jaén was also appointed as a judge of the First Civil Chamber of the Supreme Court of Justice of the Supreme Court of Justice of the Republic of Spain (CSJ) , replacing Judge Ángela Russo Mainieri, whose term is expiring.  In addition, the license to establish the Pacific Free Fishing Zone was authorized.