The Panamanian financial system has assets for the amount of US$130 billion, which represents 2.3 times the country’s Gross Domestic Product (GDP), stated Gustavo Villa, secretary general of Panama’s Banking Superintendency (SBP from its initials in Spanish).

These results, as per Panama’s Banking Superintendency, show that “banking operations maintain a positive trend, characterized by sustained growth in the local portfolio and in domestic inputs”. According to the SBP report, the Balance Sheet and Income Statement of the International Banking Center registered a total of $120,423 assets, which is the equivalent of a 4.3% growth. Liquid assets alone showed the highest growth with 11.6%.

For more information about the Banking and Finance sector, contact our partner Ivette Martínez.

Risk rating, a new requirement to issue securities

With the purpose of strengthening transparency and safety within Panama’s securities market, and also protecting the rights of investors to acquire these securities, the Superintendency of the Stock Market (SMV for its initials in Spanish), through Agreement 3-2017 (published in Official Gazette No. 28259-A of April 17th, 2017), establishes the requirement of having a risk rating as part of the documents to be included in requests to register emmissions that are presented as of January 1st, 2018, and for those series issued after the registration of the emmission.

This new rule demands the presentation of an updated report of the emmission, which must not be more than 90 calendar days, issued by the risk rating agency that is registered or recognized by the SMV. This Risk Rating report shall be presented when the SMV has approved the Informational Prospectus.

The Risk Rating Report must show in detail, at least, the description of the rated emmission, the rating that was given, and its meaning, the bases that motivated the rating, an accurate date (cutoff date) for the financial information used, and the date of agreement of the Rating or Evaluating Committee. Likewise, it must show that it is a rating on the emmissions, and must be part of the annexes of the Informational Prospectus, and must be updated annually throughout the lifespan of the emmission registry.

A report from the Controller General of the Republic points out that imports through the Colon Free Zone during the first two months of 2017 increased in 23% compared to the same period in 2016. Likewise re-exports registered an increase of 24%. Among the areas that improved re-exporting, we can find electronics (3%), car parts (8%), and others, which encompasses various products that do not represent more than 1% individually, improving by 60%.

On the other hand, the goal of joining the primary customs area with the Colon area, under one tax regime, and the commercial areas of Coco Solo and Coco Solito, a multimodal logistics center is in the process.

This logistics center will integrate operations of ports, Free Zone, Airport, and Railway, thus making operations in the area more agile, reducing operational costs, and contributing towards free movement of merchandise.

Request more information on Investment opportunities or incentives within the Special Economic Zone, Khatiya Asvat.

Panama will be headquarters for the meetings of the Global Forum on Transparency and Exchange of Information for tax purposes, organized by the Organization for Economic Cooperation and Development (OECD), from June 12-16. These forums will bring together close to 80 delegates from member states.

Our country, as a member of the Global Forum, has set into place measures to achieve standards of transparency and information exchange promoted by the OECD since the year 2009.

National Risk Strategy

With the goal of adjusting to the demands of international organizations, on May 10th of this year the Panamanian government presented the National Risk Strategy, which contemplates doubling actions to prevent and punish money laundering and financing for terrorism, as well as the proliferation of weapons of mass destruction.

The design of the strategy was supported by the International Monetary Fund (IMF), and received financing from the Government of Canada.

(Download complete document - SPANISH only- click)

Recently, our office, through our Associate in the Litigation Department, Fernando Aued, gave the lecture "THE JUDICIAL INSPECTION AS ASSURANCE OF TESTS IN THE MARITIME PROCESS", addressed to members of the Maritime Courts, as part of the updating program for judicial and public officials, on the occasion of celebrating the 35th anniversary of The Law of Maritime Procedure. He elaborated on the particular relevance for maritime procedure of judicial inspection as evidence assurance, as a tool in the preparation and execution of actions prior to the installation of litis.

Patton, Moreno & Asvat at the inauguration of the new headquarters for the Center for Conflict Resolution (CESCON)

As a recognized firm in the Arbitration sector, our Head of the Litigation and Arbitration Department, Evans González, along with Associate, Maximiliano Quintero, participated in the inauguration of the new headquarters of the Conflict Resolution Center (CESCON for its initials in Spanish), one of the most recognized institutions in Panama in arbitration, mediation and conciliation processes, both national and international. At the event they shared with the highest authorities of the judicial branch, clients and colleagues.

On May 4th and 5th, our Partner in charge of the Dept. of Litigation and Arbitration, Evans González, and associate Maximiliano Quintero, participated in the presentation of the "First Diagnosis of Civil Justice in Panama, organized by the Panamanian Institute of Procedural Law. At that meeting foreign and national jurists analyzed Panamanian civil justice over the last 30 years.

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