Panama’s credit market is showing signs of strain, with a slight uptick in loan delinquency rates and a slowdown in new loan approvals, raising concerns about the health of the country’s economy. While recent data indicates a marginal improvement in repayment behavior, the overall level of debt remains high, prompting financial institutions to exercise greater caution. The situation surrounding credit health in Panama is further complicated by ongoing debate over proposed debt forgiveness legislation.
According to data released in February 2026 by APC Experian, a company that manages credit histories in Panama, the delinquency rate stood at 5.9%. Which means that roughly five out of every 100 Panamanians are experiencing difficulties meeting their financial obligations. While this represents a slight improvement from previous months, the total debt within Panama’s financial system currently amounts to $41 billion, a substantial figure that underscores the financial pressures facing many households.
A particularly worrying trend is the rising delinquency rate for credit cards, which currently stands at 8%. On average, credit card holders are carrying balances exceeding $3,000, according to APC Experian. This suggests that many individuals are relying heavily on credit to manage their expenses, potentially leading to a cycle of debt. The company, which serves over 100,000 users on its platform, offers guidance to Panamanians seeking to optimize their credit profiles and plan their investment goals.
EN LA CIUDAD DE PANAMÁ
Beyond Delinquency: A Slowdown in Lending
Yet, APC Experian emphasizes that the slowdown in new loan approvals is another significant warning sign. This deceleration could reflect a broader cooling of economic activity within Panama, as lenders become more hesitant to extend credit. The company notes that a growing number of Panamanians are becoming aware of the importance of monitoring their financial profiles, with over 4,500 people visiting its customer service centers each month to check their credit history. More than 100,000 users have downloaded the APC Experian mobile application, utilizing it for fraud prevention and real-time tracking of their financial obligations.
The current situation is unfolding against the backdrop of a debate surrounding a proposed law on debt prescription. This legislation, which aims to establish a time limit for the collection of debts, has sparked reactions within the financial sector. APC Experian argues that while the majority of Panamanians consistently meet their payment obligations, such proposals could inadvertently benefit a minority who default on their debts. The organization stresses that responsible payment habits and regular checks of personal data enhance an individual’s visibility within the financial system, facilitating access to new products and more favorable credit terms.
Key Recommendations for Financial Health
To navigate these challenging economic conditions, APC Experian has outlined six key recommendations for Panamanians seeking to improve their financial health in 2026. These include:
- Monitoring credit history regularly to ensure accuracy and identify potential errors.
- Utilizing digital tools to manage finances and reduce debt.
- Balancing expenses and prioritizing debt repayment.
- Carefully evaluating new financing commitments.
- Setting specific financial objectives.
APC Experian underscores that understanding one’s credit information and planning ability are fundamental to building solid financial health. They emphasize that a credit history serves as a person’s “financial resume,” influencing access to credit and financial products.
The Debate Over Debt Prescription
The proposed debt prescription law remains a contentious issue. Proponents argue it would offer relief to individuals struggling with overwhelming debt, while opponents, like APC Experian, fear it could encourage irresponsible borrowing and undermine the stability of the financial system. The debate highlights the delicate balance between providing assistance to those in need and maintaining the integrity of Panama’s credit market. The potential impact of this legislation on lending practices and overall economic growth remains a key concern for financial institutions and policymakers.
As Panama navigates these economic headwinds, the ability of individuals and businesses to manage their debt effectively will be crucial. The next key development to watch will be the progress of the debt prescription bill through the Panamanian legislature, with a vote expected in the coming weeks. Further updates on the country’s economic performance and credit market conditions will be released by APC Experian and other financial institutions throughout the year.
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