- 124 -
provides financing for the national projects implemented by the Ministry.
It governs and provides funding through taxation for the national savings
and loan system for housing. The Savings Bank plays a similar role.
29.
The National Mortgage Bank estimates that low-income borrowers are behind
in their payments by 36 million balboas. It receives external assistance from
the United States Agency for International Development and the Inter-American
Development Bank, but has to pay debt interest. In view of the high cost of
construction, it considers that it does not receive enough assistance from
the Government.
30.
The private sector, which is represented mainly by the Cámara Panameña de
la Construcción (Panamanian Construction Company) (CAPAC), is involved in
housing and road construction, but mainly builds high-cost and medium-range
individual and co-owned dwellings and dwellings in the lower-medium price
range. It is quite clearly subject to the play of market forces. It depends
on the financial policy of the commercial and mortgage bank and aims to meet
only "genuine" demand, that is to say from persons who need a dwelling and can
pay for it. It considers that it is the Government’s responsibility to build
housing for the poorest population groups.
31.
It should be noted that, according to indications from a number of
governmental and non-governmental sources, practically no rental dwellings
have been built for several years. Rent collection is considered too
difficult and, consequently, the maintenance of existing buildings has been
abandoned and many are now in a dreadful state, even though they are still
inhabited. The Renta 2 and Renta 5 buildings in Panama City, for example,
which are about to collapse, had structural weaknesses as soon as they were
built.
32.
As a result of the low standard of living of much of the population, the
often precarious land-ownership situation, the housing shortage and the flight
from the land, there has been an increase in the number of land take-overs and
the construction of shacks on occupied land belonging to the Government or to
private individuals.
33.
The problem is not a new one, but it has become more important in recent
years. According to information from the Ministry of Housing, some 62,700
families or about 300,000 persons are now squatting in 314 illegal settlements
in the country. Eighty-eight per cent of these cases, involving 52,729
families, are in the Panama City metropolitan area. The other most affected
urban centres are David and the outskirts of Colón.
34.
The Canal Zone is a special case because of the signing, in 1977, of the
Treaty concerning the Permanent Neutrality and Operation of the Panama Canal
(Torrijos-Carter Treaty), which provides for the restitution to Panamanian
jurisdiction of land along the banks of the Canal and of Panama City and
Colón. These are called areas revertidas (restored areas). At present, they
account for about 900 square kilometres.
35.
The expected positive impact of the incorporation of the use of restored
land into the country’s economy and of the improved urban development of
Panama City and Colón has not yet really been felt. An act on restored areas
was adopted on 14 January 1991 which establishes more flexible machinery for