U.S. Eases Ban on Payment of Bills in Panama

The Reagan Administration on Saturday relaxed its order prohibiting Americans from paying debts in Panama, opening the way for many U.S. workers to clear up bills for water, power and other essential services.

On April 8, President Reagan barred any direct or indirect payments by Americans to Panama as part of the U.S. effort to oust military strongman Manuel A. Noriega. The order, which included U.S. corporations, also blocked all Panamanian assets in the United States.

Subsequently, electrical power and other services were cut off at the homes of some Americans, including embassy workers, who were prohibited from paying their bills.

The Treasury Department’s announcement Saturday specified that Americans may now make payments for electricity, water and similar municipal services, and for communications, including telephones and telegrams.

Also allowed will be travel-related payments, including departure fees and ticket taxes, landing fees and fuel taxes.

Individuals who have paid into Panama’s social security system, which includes health care, may continue to do so, but payments of the country’s income tax remain on the prohibited list. The payment of sales and excise taxes will now be allowed.

The new rules continue to require that payments for other obligations be made into a specially designated account at the Federal Reserve Bank of New York, to be held “for the benefit of the Panamanian people.” Those payments include corporate and individual income taxes, port fees, import duties and corporate social security assessments.

The Administration has been seeking Gen. Noriega’s ouster since he was indicted in early February on drug-trafficking charges by two grand juries in Florida.