The Agricultural Development Bank (BDA) advances in a financial restructuring process that is already showing results, according to the general manager of the National Bank of Panama (BNP), Javier Carrizo.
Carrizo explained that the BDA, which previously recorded annual losses of up to 15 million dollars, managed to reduce that deficit to 9.4 million dollars in 2025, with projections of achieving financial stability in 2026.
Among the main measures adopted, Carrizo highlighted a cost containment plan, which included the reduction of payroll, the closure of 20 branches and the reduction of the vehicle fleet from 250 to 100 cars.
In addition, these vehicles were redistributed to other public entities, municipalities and the National Police.
The official also explained that quality control of the credit portfolio is being strengthened, through the review of approved operations that were pending disbursement. Many of these were rejected when it was discovered that they were used to cancel deteriorated debts in other banks, a practice that – as he noted – was common in the institution.
Likewise, he revealed that 18 of the BDA’s 20 main clients are in legal collection, which, in his opinion, shows inappropriate use of the entity in the past. Given this scenario, the Comptroller General of the Republic of Panama was asked to carry out an audit, which had not been carried out in the last 20 years.
As part of the reorganization, controls on loan approval were strengthened, eliminating the discretion of regional managers, who had the power to approve loans of up to $100,000 per individual signature.
Despite the adjustments, the BDA has maintained financing for productive sectors, including 100 loans granted to small producers for the installation of wells. In the last five months, the entity has disbursed 5.7 million dollars.
Carrizo also announced the implementation of a portfolio recovery strategy, the strengthening of the team of executing judges and a technological diagnosis of the institution.
In addition, a transformation proposal is being worked on together with the Ministry of Economy and Finance of Panama, the BDA and the BNP.
