Real Estate Panama, Investment opportunities

Panama Could Become the New Switzerland

Although millionaires in The Americas have traditionally placed their fortunes in Switzerland, the Panamanian chapter of the eminent Society of Trust & Estate Practitioners (STEP) hopes to raise their country’s profile in asset management and resource planning to transform Panama into a prime international trust and asset management centre.

The president of Panama’s STEP chapter, Dayra Berbey de Rojas believes that Panama has the potential to develop into the benchmark for these services for the North and South American region, stating that “We have several advantages over other jurisdictions and could well earn that distinction.”  She added that “We possess all of the qualities that attract the wealthy, so what we need to do now is to promote ourselves in a manner that showcases these qualities.”

Ms. Rojas emphasized Panama’s judicial advantages which include modern trust legislation (Law 1 of 1984), the law on Private Foundations, a territorial tax system and a renowned financial centre, and noted that she will seek the support of Panama’s Superintendency of Banks to authorize the promotion of trusts in the same manner as banks. Despite very little marketing efforts, Panama trusts have performed well during the past decade, with a remarkable 65% increase reflected over the past four years.  Panama’s trust portfolio at year-end 2006 was worth $5,479 million compared to $3,316 million at year-end 2002.

There are several types of trusts in Panama, the most common being the Commercial Trust.  Forty-nine percent of existing trusts are Guarantee Trusts and 34% are Investment Trusts.  Ms. Rojas noted that after payouts arising from bank mergers, clients are establishing Private Interest Foundations instead of trusts.  There are currently 53 trust companies in Panama which are either independent firms or owned by banks, insurance companies or law firms.  Relevant licenses are granted by the Superintendency of Banks.
The Board of Directors of STEP in Panama comprises the following Attorneys-at-Law:  Luis A. Chalhoub M., Ramses Owens, Franzella Lierena-Launsett, Rogelio De la Guardia, Raúl Zúñiga, Gilbero Sucre Camarano and Luis Manzanares.

Credit Rating Grade Improved / Moody’s Raised Panama’s Country Ceiling

According to the Bloomberg financial news service, Moody’s, the leading commercial credit ratings agency and risk evaluator, has upgraded the country ceiling assigned to Panama’s bonds in foreign and domestic currency from “Baa1” to “A3” noting that this improvement reflects “a slight but true decrease in some financial risks in light of a constant political and macroeconomic stability.”

Financial specialist José Abbo stated that this increase puts the Panama Canal Authority in a very good position to get a better credit rating than the country itself because it can now attain an “A3” investment grade which will reduce the financing costs of the Canal expansion program’s third set of locks.

Aristides Hernández, an economist with the Latin Consulting firm, emphasized that this new higher grade also creates improved conditions for the country to access cheaper credit. A goal of Panama’s current Torrijos administration is to obtain investment grade status before the end of itsterm.
 
Panama  to be New UN Regional Headquarters

Mr. Nils Kastberg, regional director of the United Nations International Children’s Emergency Fund (UNICEF) recently announced that Panama will be the United Nations regional headquarters for Latin America and the Caribbean, noting that Panama’s stability and security were the core reasons  for establishing its regional headquarters there.

The regional headquarters will be constructed in Panama’s new ‘City of Knowledge’ in the former Howard Military Base site.  The Panama government has already injected US$ 2 (two) million into the first phase of this re-development project.

Panama’s President Martin Torrijos told media that the UN’s decision confirms the quality of Panama’s legal system and infrastructure and  how Panama is a key center for both regional agencies and international organizations.

Mr. Kastberg said that in contrast to some places in other continents, matters had moved ahead without complications in Panama and with a great deal of willingness to offer the UN the facilities needed to accomplish its work.  He said “Panama took the lead ahead of other regions, showing the leadership and commitment traditionally seen in its actions at the United Nations.”

Publish by Mossfon Report