Here’s the translation into American English:
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The Savings Bank has launched a structural plan under the direction of its general manager, Andrés Farrugia, aimed at addressing the critical delinquency situation faced by the National Mortgage Bank (BHN), which has reached an alarming 94%. This issue affects a portfolio estimated at over $250 million, putting the stability of the entity at risk.
The strategic plan includes a key decision: the Savings Bank will not absorb BHN’s delinquent portfolio; instead, it will be packaged into a trust for independent management. This strategy aims to prevent potential financial contagions that could arise if these assets were included in the Savings Bank’s accounting.
Among the more drastic measures considered is the reduction of the number of branches and staff at BHN, which currently employs around 450 people. This situation has been deemed unsustainable given the market context.
Despite the focus on delinquency, the Savings Bank is committed to continuing its mission of promoting social housing. So far, over 4,000 mortgages have been approved for a total of approximately $305 million, and it is expected to maintain an annual rate of between 5,500 and 6,000 transactions to ensure that thousands of Panamanian families have access to decent housing.
The restructuring plan also includes a voluntary retirement scheme aimed at long-serving employees and retirees. Nonetheless, the Savings Bank has increased its workforce to nearly 2,400 employees, reflecting a growth of 800 positions since 2021. In the past year and two months, approximately 150 employees have been laid off as part of the restructuring process.
Through these actions, Farrugia and his team aim not only to heal the situation at BHN but also to ensure the solidity of the Savings Bank, strengthening its role in financial inclusion and access to housing for the citizens of Panama.
Source: MiMub in Spanish
