Panama Banks Cash Checks 1st Time in 9 Wks.

Banks in Panama opened today to cash checks for the first time in nine weeks, a move expected to ease the country’s economic crisis and reflect Gen. Manuel A. Noriega’s ability to stay in power despite U.S. pressure.

Short lines of Panamanians began forming outside downtown bank offices early this morning but the lines disappeared as the banks opened. Some banks had set up barricades and loudspeakers outside their offices in expectations of large crowds.

At one downtown bank, about 20 people waited patiently for the bank to open.

Eli Clarence, an accountant with a computer firm, said he was trying to cash his paycheck.

“If my company has money in its account, I may get some money today,” Clarence said, adding that he and his fellow workers have been paid half in cash and half in checks since Panama’ economic crisis erupted a month ago.

Government restrictions limited the amount of cash bank clients could withdraw from their accounts.

Panamanians had not been able to cash checks or withdraw money from banks since March 3, when the government controlled by Noriega, Panama’s Defense Forces chief, ordered banking operations suspended because of a cash shortage and fears of a banking panic.