Banco Nacional Of Panamá And Caja De Ahorros Supported Their Budgets -

(MENAFN- Newsroom Panama) The third day of the budget hearings of the National Assembly's Budget Committee was held with the support of Caja de Ahorros and Banco Nacional of Panamá. The day began with a presentation by the general manager of Caja de Ahorros, Andrés Farrugia, who defended his budget for fiscal year 2026 of $1.732 billion. This represents $486.9 million for operations and $1.245 billion for investments in headquarters and branch equipment, infrastructure, technology, and other items. He explained that the majority of the budget is allocated to debt service payments from funds acquired abroad, which are necessary for the bank to operate. He also expressed concern about the savings culture and said that, although the institution manages an estimated 650,000 account holders, there is still a long way to go before Panamanians feel confident in storing their money formally.

Regarding the controversial $2.7 million tender to remodel its main headquarters, Farrugia commented:“For image reasons, I preferred to cancel that tender.” He added that he is launching a new public tender to remodel the first and second floors. Meanwhile, Banco Nacional of Panamá sustained its budget of $2,343.4 million. Javier Carrizo Esquivel, the bank's general manager, reported that the amount of $1,633.9 million is planned for investments, representing 70% of the budget. Of the total investments, $1,555.4 million is expected to be obtained from loan placements, representing 66.4% of the total budget. $709.5 million will be allocated to operating expenses.

According to the BNP, as of July 2025, it has a total loan portfolio of $7,547.9 million, total deposits of $9,812.7 million, liabilities of $2,650.6 million, and a capital fund of $1,520.3 million. Accumulated profit to this date amounts to $151.1 million. “These results reflect the solidity of the bank's management and motivate us to continue promoting initiatives that strengthen the country's economic development,” said Carrizo. The Public Registry, the Colón Free Trade Zone, and National Bingos were other entities that appeared before the Budget Committee, chaired by Representative Eduardo Vásquez.

Multi-Million Dollar Losses of the Agricultural Development Bank

The executive branch assigned the National Bank of Panama to conduct a diagnostic of the Agricultural Development Bank (BDA), and the report is now ready. Part of the results was announced this Wednesday in the National Assembly. Representative Crispiano Adames questioned the general manager of the National Bank about the current status of the Agricultural Development Bank and whether it would, in fact, be eliminated or reduced. “What's really going on there? Because there are a number of officials from the Agricultural Development Bank who know nothing. How is it that nothing is known here?” Adames asked.

In response to this question, Javier Carrizo, head of Banco Nacional, clarified that the bank [Agropecuario] is not going to close, but rather that the goal is to recover its essence through a transformation. “For many years, the bank neglected what it was; the bank began lending to very large clients, and they would be surprised to know that the BDA offers loans of $3 and $4 million to a single borrower, when they should be targeted at small producers. After the diagnosis, what we are recommending is for the Development Institute to focus on serving small producers,” Carrizo said. Carrizo pointed out that the transformation seeks to optimize the institution's operations.

Furthermore, according to the report presented to the Budget Committee, the bank has accumulated losses of more than $200 million and has $260 million in its loan portfolio , between 40 and 60% of which are portfolios that“will have to deteriorate anyway.” “To complement the question about payroll and operations, so you have an idea, this institution was operating at a cost of more than $23 million. And what it generated in revenue was $7 million. They consistently lost, or consistently lose, $15 million each year,” an official reported. The questions and answers for this assessment emerged in the National Bank's proposed budget for 2026, which totals $2.343 billion.

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