Tuesday 21 September 2021

Panama suspends evictions during the state of emergency for COVID-19

Arguing that the dynamic evolution of the covid19 has changed the socioeconomic conditions of the population, the government of Panama modified the rule that suspends evictions for the duration of the health emergency.

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(Q24N) Arguing that the dynamic evolution of COVID-19 has changed the socio-economic conditions of the population, the government of Panama issued a decree that suspends evictions for the duration of the health emergency.

The Executive Decree of August 7, 2020, which was published in the Official Gazette, modified articles 2, 5, 6, 7 and 11 of Executive Decree No. 145 of May 1, 2010, applies to lease agreements of all kinds (e.g., commercial, industrial, residential, educational);

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After being modified, Article 5 details that “… While the State of National Emergency is in effect and up to two months after the lifting of this measure, tenants affected by the economic crisis caused by the COVID-19 pandemic, who are unable to pay their rent, may benefit from Article 2.”

Article 2 suspends the procedures for eviction of real estate intended for residential use, commercial establishments, professional use, industrial activities, and teaching, without distinction of the rent.

The new text of Article 6 specifies that “… After the effects of the Declaration of the State of National Emergency have ceased, and up to two months after it has been lifted, if the tenant refuses to pay the landlord the rental fees that have not been paid during that period and does not comply with the signed mutual agreement, the affected party may appeal to the ordinary courts in the event of non-compliance.”

See full publication of “Executive Decree No. 314”.

As of August 13, Panama reports 77,377 confirmed cases of COVID-19 and 1,703 deaths.

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