Panama Is Forced to Close Its Banks : Commerce Disrupted by Pressures From U.S. and Foes of Gen. Noriega

Panama, which developed over the years into a major Caribbean banking and commercial center, found itself Friday with its banks shut down and commerce disrupted because of economic pressures exerted by the United States and the foes of military strongman Manuel A. Noriega.

The government proclaimed a bank holiday, which officially closed both local, Panamanian-owned banks and the international banks that have made Panama one of the most important offshore banking nations for residents of the Western Hemisphere.

Local banks had decided the day before to shut down Friday because of a lack of cash to satisfy depositor demands for withdrawals.

“Due to unusual and extraordinary demand, the availability of the required North American dollars does not exist for the functioning of the national banking system,” the government’s Banking Commission said in a statement announcing the holiday.

The bank closures will remain in effect until further notice, the announcement added.

Panama uses the U.S. dollar as its currency, calling it the balboa.

Depositors Line Up

Unbelieving depositors lined up in front of banks, hoping to get their savings out.

“This is all the money I have,” said Mario Arias, waving a paycheck received for his work in an accounting office. “I do not have money tucked away in Switzerland.”

Many stores posted signs at their doors informing customers that no personal checks would be accepted--only cash. Some merchants refused to take credit cards and traveler’s checks.

“Everything is up in the air,” said Uri Dahan, manager of the Clubman boutique in the city’s financial district.

The bank closures and cash shortages capped a week of economic and political turmoil here.

Noriega Resists Ouster

Gen. Noriega’s foes have been trying to unseat him for eight months. The Reagan Administration has maneuvered to ease him out of power and replace him with a strong civilian government. But Noriega has so far proved impossible to dislodge. As commander of the 15,000-member Panama Defense Forces, he is the power behind nominal civilian governments that have held office here in recent years.

Pressure on Noriega from inside and outside of Panama increased after the ouster last week of figurehead President Eric A. Delvalle. Delvalle was removed from office by the National Assembly, dominated by the pro-Noriega Revolutionary Democratic Party, after he tried to fire Noriega from his military post.

Noriega’s opponents seized on the incident to organize an anti-government general strike. Simultaneously, Noriega’s enemies in the United States have tied up Panamanian government funds there, creating the cash crunch here.

U.S. Recognizes Delvalle

The United States still recognizes Delvalle as president of Panama, although he is in hiding and now administers nothing inside the country.

The general strike officially ended Thursday night, but several striking businesses closed again Friday in response to the cash shortage.

“If the situation does not clear up soon, this place will be in shambles,” said an American banker who has lived here many years.

About 120 international banks operate in Panama and are an important source of jobs in the Panamanian economy. The cash crisis does not affect their non-local operations because, for the most part, funds in their control are moved by telex and other electronic means.

In recent months, however, foreign banks have cut back their Panama operations because of dwindling business and a lack of confidence among foreign depositors, who can easily move their money to offshore banking centers elsewhere in the Caribbean.

A Run on Local Banks

Local banks have suffered a run on their deposits. They were told by the National Bank of Panama, the country’s central bank, that they will be supplied no cash to replenish their supplies until further notice.

“The banks are all closed. They will stay closed until the funds in the United States are unfrozen,” said Manuel Naza, a spokesman for the National Bank.

The government treasury itself is reportedly low on funds, and U.S. officials speculate that Panama may not be able to meet bureaucratic payrolls due in mid-March. The country is almost certain to miss its next payments on its foreign debt.

The government began Friday to retaliate against some of its opponents. Government agents went to the headquarters of the Gago supermarket chain to inspect the company’s books. The agents ordered the manager of the chain, Ricardo Gago, to close its operations. Gago refused, and the agents called in reinforcements.

Workers Force Retreat

Truck drivers, accountants, forklift operators and secretaries at the headquarters responded by blocking the entrance to the building. The 30 agents who arrived then retreated and did not return.

“The government cannot order us to shut. This is not their store,” Gago said.

Similar incidents occurred at the eight Gago outlets in Panama City.

Gago, which joined this week’s general strike, was the target of vague government warnings earlier this week.

“Gago is a supermarket that earns thousands of dollars from the government each month for the supply of food and other products,” said an article in the government-owned newspaper La Critica. “Measures have already been taken in view of the open seditious posture of its owners.”

Dissident’s Office Searched

Agents of the National Department of Investigations, the Panamanian equivalent of the FBI, ransacked the offices of retired Gen. Ruben Dario Paredes, Noriega’s predecessor as Defense Forces chief. Paredes has been urging active-duty military officers to abandon Noriega. Investigators at his offices said they were looking for illegal drugs. Paredes was not present at the time.

Plainclothes police also closed an Italian restaurant owned by a man whose son is active in groups opposed to Noriega.

There were unusually large numbers of police stationed in the financial district giving out traffic tickets Friday. The area has been a center of anti-Noriega demonstrations.

It is very easy to make a wrong turn on Panama City streets these days; many traffic signs are missing and street signals have been largely destroyed during the recent unrest.

The opposition was engaged in meetings throughout the day on what steps to take next, and there were signs of divisions cropping up within the group.

Many opposition leaders, for example, are against identifying themselves with Delvalle, who long functioned as a puppet of Noriega. Delvalle is expected soon to embrace the opposition, but the opposition is unlikely to return the favor.

Leaders of the Civic Crusade, a grouping of business and industry leaders who have led the local fight against Noriega, say they do not trust Delvalle.

“Delvalle persecuted us for months while he was in office,” crusade leader Aurelio Barria said. “We do not want to give him a blank check to lead us now.”

U.S. Embassy officials here are trying to promote the formation of a shadow government headed by Delvalle and with crusade officials participating, but crusade leaders say they will join no such group.

“We must get rid of Noriega before forming any transition government,” Barria said.