Panama Laws and Advice

Panama has established itself as a tourist destination in 2011

2012-01-05T17:53:00.000-08:00

With little more than 3 million inhabitants, Panama managed to capture 2 million tourists in 2011. In the region, only Costa Rica, Guatemala and Honduras had reached this figure before. The Panama Tourism Authority projects that the activity will continue to grow in 2012 and next year's estimate is over 2.2 million visitors.

Happy 2012!

2011-12-30T09:17:00.000-08:00

Greetings,

Happy New Year! ¡Feliz Año Nuevo! C Hoвым Годом!

From our office in sunny Panama Republic – the thriving little gem of Central America and the gateway to Latin America – visit with us!

Best wishes,
Juliette M. Passer & the NY - Panama Team

Panama improved standing in the WEF financial index

2011-12-19T17:40:00.000-08:00

Panama stood out among Latin American countries which have better financial development, climbing two positions located at No. 37 of 60 economies covered in the WEF (the World Economic Forum) index.

Panama shows large differences between its strengths and weaknesses in this report that measures and analyzes seven factors within three broad areas that encourage development of financial systems in the World.

WEF analyzes the policies and institutions, variety, size, depth and efficiency of financial intermediaries, and access of people and businesses to capital and financial services.

Panama ranked high with regard to the degree of financial sector liberalization (19), however, the Economic Forum found flaws in terms of enforcing contracts (58).

The country needs improvements in its policies and institutions, including the quality of education in mathematics and science (58). There are also large gaps in the time it takes to pay taxes (53) and the regulation of securities exchanges (51).

However, the country has a better position in financial stability (39), access to finance (33), access to loans (13), and a high level of foreign direct investment (5).

Panama’s local economic activity grows 9.13%

2011-12-01T06:31:00.000-08:00

The monthly index of economic activity (IMAE) of Panama grew by 9.13% in the first nine months of the year. Most sectors of the economy performed better than last year.

Construction continues to be driven by public investments in infrastructure.
Transportation, storage and communications, trade, hotels and restaurants, mining and quarrying, real estate, financial services, personal and social community services, electricity and water, agriculture and manufacturing are other growing sectors.

Interestingly, report stated that the sector with the worse performance from previous years is still the fishing sector.
The government estimates that Panama economy will close the year with 9% growth.

Congratulations on celebrating 20th Anniversary of private practice!

2011-11-19T16:42:00.000-08:00

To our clients, friends and associates:

Congratulations on celebrating 20th Anniversary of private practice to Juliette from PanaManagement Corporation, International Project Development Group and the Panama NY team!

As Juliette said: “It has been amazing 20 years, which took me from China, Uzbekistan and Russia to East and West Europe and now to Panama. I am looking forward to covering the rest of the World in the next 20 years… Thanks for all your business and support!”

We are looking forward to continuing working with you and seeing you in Panama.

The NY-Panama Team

Colon Free Trade Zone re-exports increased by 57%

2011-11-15T17:10:00.000-08:00

Colon Free Trade Zone (“CFZ”) is the largest free zone in the Americas and the second largest in the World. Created in 1948, the free zone houses 1,751 merchants, receives yearly more than 250,000 visitors from all parts of the World, mainly from countries such as Haiti, Jamaica, Costa Rica, Venezuela, Colombia, United States, Ecuador, and others. The CFZ generates exportation and re-exportation goods valued at more than US$ 11.4 billion in 2010.

According to a report of Statistics and Census Institute (INEC), Colon Free Trade Zone (CFZ) grew 31% in first half of 2011 over the same period of last year. The expansion occurred as a result of increased orders from almost every Latin America countries. Total re-exports reached US$6.715 million in the first half of this year, which represented an increase of US$ 1.602 billion over the same period of last year; in August re-exports reached a value of US$ 1.429 million, an increase of over 57% over the same month last year of US$910 million.

At the same time imports from the Colon Free Zone, in August reached U.S. $ 1.516 million, which exceeded $ 997 million the same month in 2010, representing an increase of over 52%. Imported products are mainly - according to their amount - of China ($538 million), Singapore ($430 million) United States ($125 million), Hong Kong ($67 million) and Mexico ($41 million).

CFZ employment is 30,000 people. This special economic area makes a contribution to GDP of 7%. CFZ value added increased 7.3% in the first quarter of 2011, as a result of strong economic expansion of Latin America. The forecast is that CFZ re-exports will grow 8.3% from 2011 to 2014 (average growth rate per year).

New photos from Panama City from Juliette Passer

2011-11-11T17:44:00.000-08:00

New photos from Panama City from Juliette Passer, including the architecturally innovative Yacht Club Tower – enjoy and visit with us soon!

More on Picasa:
https://picasaweb.google.com/110954409554769523837/PanamaCityPanamaNovember2011ByJuliettePasser#

Critical situation in Colon, Panama - landslides and floods…

2011-11-10T14:40:00.000-08:00

The end of the rainy season in Panama proved treacherous again this year - floods, landslides and even closed schools in the isolated communities in the province of Colon, where the Ministry of Education suspended classes this week.

Similarly, the highway was blocked by a landslide. A team from the Ministry of Public Works is working on clearing the road even today, despite of the national holidays.

Panama investment highlights

2011-10-28T17:14:00.000-07:00

A report of the Economic Commission for Latin America and the Caribbean (ECLAC) placed Panama as the Central American country with the highest volume of foreign direct investment (FDI) captured in the first half of the year.

During this period, Panama received 1,416 million dollars, again beating Costa Rica, its closest competitor, which recorded 570 million dollars.
According to projections from the Comptroller General, the Panamanian economy could raise over 3 billion dollars in FDI in 2011, exceeding the
2,362 million dollars last year.

Among the factors that have driven FDI in Panama is the establishment of multinationals such as Wrigley and Fastenal (U.S.), Atlas Copco (Sweden), Unilever (Netherlands), Merck and Bauer (Germany).

According to the ECLAC report, foreign investment in the 18 Latin American economies grew 54% in the first six months of the year, confirming good economic performance of the region, despite the uncertainty of the European crisis and the U.S. deficit.

La Prensa
October 26th, 2011
Summary by Juliette Passer

30% progress on Panama Canal expansion

2011-10-24T11:03:00.000-07:00

The expansion project of the Panama Canal is 30% complete, including dredging, dry excavation, design and construction of new locks. This work was done by a Belgian company - Jan De Nul Group, which won the contract in August of 2010 for $54.5 million.

Yesterday, the Panama Canal Authority (ACP) commenced the filling of the Pacific access channel to connect the new Post-PANAMAX locks with the Gaillard Cut.

It will take about three days to fill the area using 1.4 million cubic meters of water from Gatun Lake according to Jorge Luis Quijano, Executive Vice President Engineering and Program Management of the ACP.

This entry to the Pacific access channel is measuring 1.6 km long, 218 meters wide and its depth of excavation is to 9.14 meters above sea level. The rest of the Pacific access channel, with a total length of 6.1 kilometers, will be filled during 2013 once it has completed the excavation of 26 million cubic meters and the construction of earth and rock dam of 2.3 km that separates the Miraflores Lake.

October 20, 2011
La Prensa, Summary by Julitte Passer

You can see the process on the video by Jan de Nul - "Dredging the new Panama Canal" at:
http://www.youtube.com/watch?v=8S5Z807Ws4c

2011-10-21T13:38:00.000-07:00

November is the month of Holidays in Panama – the list is below – make plans accordingly and enjoy a few days off!

November 2nd: Memorial Day (Día de los Difuntos)
Half Day up to 12PM

November 3rd: Independence Day (Separación Panama de Colombia)
Day Off

November 4th: Flag Day
Day Off

November 5th: Colon Day (conmemoración Patriótica de la Ciudad de Colon)
Day Off

November 10th: Uprising Day Los Santos
Day Off

November 28th: Independence Day (Separacion Panama de España)
Day Off

Happy Holidays to all from Juliette and the NY Panama team!

2011-10-21T13:32:00.000-07:00

November is the month of Holidays in Panama – the list is below – make plans accordingly and enjoy a few days off!

November 2nd: Memorial Day (Día de los Difuntos)
Half Day up to 12PM

November 3rd: Independence Day (Separación Panama de Colombia)
Day Off

November 4th: Flag Day
Day Off

November 5th: Colon Day (conmemoración Patriótica de la Ciudad de Colon)
Day Off

November 10th: Uprising Day Los Santos
Day Off

November 28th: Independence Day (Separacion Panama de España)
Day Off

Happy Holidays to all from Juliette and the NY Panama team!

Panama Canal would bring the State $985 million this year.

2011-10-19T17:16:00.000-07:00

In its 12 years of Panamanian administration, the Panama Canal will be delivering to the National Treasury 6 billion 556.1 million dollars.

In 2011, Panama Canal broke a record in freight volume, reaching 322.1 million tons in one year. This figure improved record by 7.1% from 2010.

Direct contributions from the Panama Canal to Panama budget this year will total $985 million, according to the latest estimates from the Ministry of Economy and Finance.

This figure will be $147 million above what was budgeted for 2011. The total contributions consist of $365 million in tolls ($21 million more than budgeted) and $620 million dividend ($126 million more than budgeted).

The improvement in the results of 2011 is due to increased traffic on the waterway, which also was a record. For next year, the Canal expects 332.5 million tons in freight volume.

Summary by Juliette Passer, La PRENSA, October 2011

More US investment is expected with the TPA between the U.S. and Panama, summary by Juliette Passer, Esq.

2011-10-18T15:41:00.000-07:00

The Panamanian industry sector and government expressed hope that the ratification of the Trade Promotion Agreement (TPA) with the United States will attract new investment to Panama, but others expressed concerns that it poses a challenge for the agricultural sector of Panama.

The Agreement comes at a time when Panama is experiencing a boom with an average economic growth of 8.5% over the past five years and prospects for growth of over 9% for 2011.

"We will facilitate what we have to do to help our producers and farmers so they can compete with quality products with good prices," said Ricardo Quijano, Minister of Commerce and Industry of Panama. "We will give the necessary support ... so that agricultural producers can have access to new technologies, new products and thus be competitive."

Maritime sector and services, including areas such as finance and logistics are the most excited about the TPA, because the Agreement improves the conditions for the investment of American capital, which would hopefully bring new businesses and create more local jobs.

Minister Quijano considered Panama's geographic position and the growth of logistics operations for transportation of goods by sea, land and air as favorable combination of factors coupled with the U.S. trade pact with Panama for consolidating its platform for export.

October 15th, 2011, Telemetro (Channel 13), summary by Juliette Passer

We have trade agreement with Panama!

2011-10-13T12:29:00.000-07:00

We have trade agreement with Panama! summary by Juliette Passer
LA PRENSA, OCTOBER 13TH.

The U.S. Congress approved yesterday the trade promotion agreement (TPA) with Panama after a marathon session that ended four years of stagnation in the White House.

After two intense debates Panama won approval of the agreement. In the House of Representatives it received 300 votes in favor and 129 against, while the Senate had 77 votes in favor and 22 against.

With this, the Agreement is ready to be signed by President Barack Obama, who called the approval of agreements with Panama, Colombia and South Korea as "a great victory for workers and businesses."

The United States is Panama's main trading partner, and the Agreement opens to Panama access to a market of 300 million potential consumers. The TPC in Panama involves a demanding agricultural sector competitiveness and improving the quality of education. It is expected that more American companies come to the country, that the financial sector will make its way in America, and Panama to provide preferential services in that market.
"This is an achievement of all Panamanians and administrations that have preceded us. The Panamanians have to prepare to take the benefits of this treaty, which shall enter into force soon,” said President of Panama Ricardo Martinelli.

Federico Humbert, President of the Panama Chamber of Commerce, described the ratification as a historic moment for the country. But he warned that the changes have to occur in all sectors.

"Hard work lies ahead, the implementation period should last about 18 months, in which both government and private sector must press ahead to support our producers, to ensure that when the treaty enters into force they are ready to reap the benefits that it can give us ...", said Humbert, who was also Ambassador to Panama in the United States.

On Tuesday October 18, Minister of Commerce, Ricardo Quijano, will be traveling to Washington to begin the process of implementation of the treaty. It is expected that in eight months it will take effect.

Panama is a more competitive country, summary by Juliette Passer

2011-10-11T08:21:00.000-07:00

Panama advanced this year four positions in the rankings of Global Competitiveness and was among the 50 most competitive economies in the world. The country, according to the World Economic Forum, coming from the 53rd position joined the 49th position, and became again the second most competitive nation in Latin America in 2011, surpassed only by Chile, which held the 31st position.

Summary and photo by Juliette Passer

Millions are invested into the western suburbs of Panama City

2011-10-04T06:23:00.000-07:00

According to the main Panamanian newspaper, LA PRENSA, investors found fertile land to put their money west of Panama City. Arraijan -specifically, in the past was known as a dormant town - they have now developed commercial and hotel projects whose main attraction is its proximity to the capital city, but without the typical traffic chaos and bustle of the City of Panama.

Between 2009 and July 2011 the value of construction in Arraijan added $200 million, of which $97 million was invested in nonresidential projects. Regis Gaston, President of the Panamanian Chamber of Construction (CAPAC), estimated that commercial property investments will continue to increase towards the west.

He noted that there is already a captive population in Arraijan and La Chorrera, and so now employers are focusing on commercial projects. But beyond the dollar investments, the President of Capac argues that it is urgent to expand the road infrastructure to expedite travel between the capital and the area west and vice versa.

The Panama Canal Authority (ACP) included $ 20 million in its budget for 2012 for the design of a fourth bridge over the waterway. The bridge, according to information from the ACP, will be designed to withstand the weight of a light rail. On the grounds of the former Howard Military Base, the firm London Regional is planning to invest $705 million over a period of 40 years. Of this total, the company has already invested 15%, and by 2015 the figure expected to reach $405 million.

At least 70 companies, mostly multinationals, already operating in Howard and by the end of the year the company expects to deliver the first residential units with sales recorded over 50%. This project pushes the development of surrounding areas, as is the case of Farfan, where Empresas Bern is building a hotel of 621 rooms and a residential complex. The combined investment is exceeding $120 million and is scheduled for October 2011 opening of the hotel, which will be managed by the Westin chain.

Panama’s economic activity keeps pace: 8.68% in 2011

2011-09-29T18:26:00.000-07:00

Panama’s economic activity keeps pace: 8.68% in 2011

Panama’s economy is healthy! According to the latest report by the General Comptroller of the Republic of Panama, in the first seven months of 2011 the monthly index of economic activity (IMEA) grew by 8.68% over the same period last year. The best performing sectors were: construction, transportation, storage, communications, trade, hotels and restaurants, mining and quarrying, the social and personal community services, electricity, water and manufacturing.

President OBAMA promises commercial Agreement with Panama

2011-09-22T15:45:00.000-07:00

President OBAMA promises commercial
agreement with Panama at the UN General Assembly

President of Panama, RICARDO MARTINELLI, participated yesterday in the debates of the opening of the sixty sixth United Nations General Assembly, where subjects in reference to the challenges of the Nations of the world and national concerns were discussed.
Martinelli also met with the President of the United States, Barack Obama, who said that the commercial promotion treaty (free trade agreement) will be a reality. “Soon we will see the culmination and realization of the United States FTA”, said Martinelli. Among the leaders that met with them, was Chilean President Sebastian Pinera, who will visit Panama in October, President Mikheil Saakashvili, from Georgia, and some executives from AES Panama and Petroterminal of Panama.

CEO Club Miami Branch Inauguration Conference

2011-09-16T06:41:00.000-07:00

Happy Birthday, Panama Canal!

2011-08-18T20:47:00.000-07:00

August 15th 2011 marked the 97th birthday of the Panama Canal, which was a hugely famous engineering achievement at its inauguration and continues to awe its visitors, including me, every time I visit Mira Flores!

Trump Ocean Club in Panama City, Panama

2011-06-14T06:29:00.000-07:00

Panama briefs by Juliette Passer: The Trump Ocean Club is set to open this summer in Panama City – beware of fraudulent emails offering closing and mortgage services! All closings are handled by representatives in the US with only the Deed processing in Panama.

Panama Briefs by Juliette Passer May 2011

2011-05-18T11:29:00.000-07:00

Panama will be the Permanent Headquarters of the Executive Secretariat of the Central American Council of Superintendents of Banks, Insurance and Other Financial Institutions (CCSBSO).

To choose the permanent headquarters, the Superintendent General of Financial Institutions of Costa Rica, Mr. Francisco Lay Solano, representing the Permanent Executive Secretariat (SEP, by its acronym in Spanish) Commission, comprising of Costa Rica, Panama, and Guatemala, presented to the General Assembly of the Council, the results of the analysis made, in which they evaluated key factors, such as: safety, costs, and qualitative aspects of the candidate countries, Guatemala and Panama.

The Executive Secretariat, which will start permanent operations in Panama in August 2011, is an administrative body of the Council that will respond exclusively to it, without any relationship or subordination to the host country.

More recent photos of Panama City - March 2011

2011-04-26T11:49:00.000-07:00

Juliette is traveling back to Panama in early May – ready to visit with us?

During February of this year 176,202 tourists arrived at Panama - 13% more than for the same month last year. In the first two months of this year 381,859 tourists arrived.

More photos at: https://picasaweb.google.com/juliettepasser/PanamaCityMarch2011#

Panama Laws and Advice: Preview "More recent photos of Panama City - March 2011"

2011-04-26T11:48:00.000-07:00

Panama Laws and Advice: Preview "More recent photos of Panama City - March 2011"

2011-03-07T09:22:00.000-08:00

President Martinelli of Panama stated recently that the Panama Government will soon open the bidding for the building of a 4th bridge over the Panama Canal. It will be at the Pacific entrance to the Canal between Howard and Amador. With the expansion of the Canal, POST PANAMAX ships would be hindered by the present bridge.

The President also opened the debate over the future of the Bridge of the Americas. According to President Martinelli, the structure might hinder the passage of bigger ships.

Soaring 384 feet above the ocean at average tide and measuring 5425 feet from end to end, the Bridge of the Americas reaches across Panama Bay at the Pacific Canal entrance, reuniting the land divided during the construction of the Canal and forming another link in the Pan-American Highway.

PANAMA PLACES $500 MILLION BOND IN JAPAN

2011-02-03T07:42:00.000-08:00

PANAMA PLACES $500 MILLION BOND IN JAPAN

The government of Panama has completed the ten–year bond issue for 41,500 million yen (about $500 million) in Japan’s capital market.

Panama has become the third Latin American country together with Colombia and Mexico to enter into the Japanese market. The issue, partly backed by the Japanese Bank for International Cooperation, was structured and place by Daiwa Security Capital Market and Mitsubishi UFJ Morgan Stanley Securities.

With 1.81% interest rates, the bonds were placed among private qualified investment institutions such as central banks, insurance companies, regional banks and other financial institutions. The demand doubled the offer.

2011-01-25T17:27:00.000-08:00

Recent photos by Juliette Passer, Panama January 2011 - Healthy & strong - at: http://picasaweb.google.com/juliettepasser

Focus on Investors - Doing business in Panama with your eyes open! by Julette Passer

2011-01-06T15:28:00.000-08:00

Trust experience and knowledge™.

Focus on Investors - Doing business in Panama with your eyes open!

By Juliette Passer

Panama is a great place to live and work. In recent years Panama has been growing in popularity among investors, expatriates and retirees alike. Recently popular online publication “International Living” rated it as the No. 1 place to retire in the world, and for good reasons. Panama’s prospects for economic growth are strong amidst global economic meltdown, showing positive growth of 2.3% in 2009 and this economic expansion is expected to continue in 2010 and beyond. This is mainly due to substantial growth in the financial and construction sectors, tourism and the commercial expectations placed on the ongoing expansion of the Canal, which connects the Pacific and Atlantic Oceans creating a natural hub for business between North and South America as well as between Asia and Europe with direct maritime access to over 80 countries and 3.5 billion people.

Panama's dollar-based economy offers low inflation and zero foreign exchange risk. Its legal and regulatory regimes are business friendly. Its government is stable, democratic, and reform minded and actively seeks foreign investment in all sectors, especially services, tourism and retirement properties. Panama’s current and planned public investment in productive infrastructure is one of the highest in the region and is on par with East Asian economies, including the planned construction of a subway in Panama City. These factors are expected to contribute to lowering unemployment rates to 4.8% and 4.6% in 2011 and 2012 respectively.

Its banking sector currently comprises of more than 80 foreign banks, providing full banking services through ATM cards, Visa credit cards, check books, Internet banking and Visa debit cards. The first two banks opened its doors in 1904, one was called the International Bank Corporation is today’s Citibank, part of Citigroup, the biggest financial conglomerate in the world and the second one was the Banco Nacional de Panama. The banks of Panama are strictly supervised and licensed by the Superintendency of Banks (Superintendencia de Bancos de Panamá), Panama’s regulatory authority. At present, Panama is reported to have the most upgraded banking system in the world.

Panama offers a higher quality of living at a lower cost and with less crime than typical Central American destinations, although Panama City is rapidly getting to world pricing. Panama has a wealth of variety to offer whether it is beaches, lakes, mountains or the countryside and prices for real estate purchases with a range of choices for practically any budget.

The Colon Free Zone, the second largest in the world after Hong Kong, is a vital trading and transshipment center serving the region and the world. Panama has no restrictions on the outflow of capital or outward direct investment. Its accession to the World Trade Organization in mid-1997 opened up trade and lowered tariffs.

According to Panama's constitution, nationals and foreigners are treated equally under the law. Both Panamanian and foreign companies must fulfill the same basic requirements to organize and operate most types of business activities in Panama. There are restrictions on foreigners participating in retail trade and practicing certain professions. In practice, however, there are legal ways to overcome these restrictions. Panama has one of the most modern and flexible corporate law frameworks in Latin America. Panama is an interesting and potentially profitable jurisdiction for licensing agreements and joint ventures as well as routine commercial operations for international companies.

Having listed all the good reasons to invest in Panama, the caveat is - you must be careful, so to paraphrase the famous line from the Wizard of Oz: “This ain’t exactly Delaware, Dorothy!”

Foreign investors, especially from the US and Canada, Juliette Passer warns routinely drop their guard in a deceptively familiar legal environment of Panama, which is based on the Delaware Corporations Law and similar to the Wyoming Limited Liability Company Law, but allows bearer shares and untitled real estate sales.

Panama has a court and judicial system built around a civil code, rather than the Anglo-American system of reliance upon case law and judicial precedent. Fundamental procedural rights in civil cases are broadly similar to those available in U.S. civil courts; however, the system can be inefficient and prone to abuse. Though the system is improving, many in the business community, both Panamanian and foreign, lack confidence in the Panamanian judicial system as an objective, independent arbiter in legal or commercial disputes, especially when the case involves powerful local figures with political influence. In a few cases the appearance of corruption has been so widely accepted as to constitute conventional wisdom. Arbitration is always a better choice at the Center for Mediation and Arbitration established by the Panamanian Chamber of Commerce or at various European or American arbitration centers and courts.

Since Spanish is the official language in Panama, always make sure the request your transactional documents in English, Juliette Passer advises, as translations of the Spanish documents and never sign any agreements in Spanish if you do not speak and read the language! Legal documents are not interesting reading, but it is a must for a successful investment.

The Public Register of Panama provides much transparency to the company registrations, recordings of mortgages and liens and for transfer of title to properties, however, it also prone to misuse by unscrupulous parties.

Lastly, but just as importantly, Panama has many experienced attorneys and established laws firms; however, the conflicts of interest rules and ethical standards followed by the Panama Bar are not as stringent as those in the US. Hence again, caution must be exercised. At the very least, ask the partner of the firm to warrant to you that other members of the firm are not involved in representing parties adverse to your interests and transactions and do not use affiliated entities as trustees, if the firm is representing the seller in your purchase transaction. A good local bank can be easily hired as a trustee.

Use your common sense to build a team of advisors you can trust and you will do very well in beautiful Republica de Panamá!

Copyright 2008-2010, Juliette M. Passer, Esq.

About the Author

Juliette M. Passer is a U.S. attorney, with over 19 years of broad international transactional experience, specializing in corporate and project finance, as well as new media transactions and e-commerce. Juliette Passer holds a JD (cum laude) from Cardozo School of Law and studied Soviet Law at the Columbia University School of Law. She practiced law with the international law firms of Debevoise & Plimpton and Patterson, Belknap, Webb & Tyler in New York, specializing in corporate and project finance. Juliette Passer is a member of the Council on Foreign Relations and serves on boards of several companies. She is listed in Who’s Who in American Law and Who’s Who in American Women. As a pro bono undertaking, she represents Russian and Ukrainian artists, dancers and musicians. Juliette Passer is a frequent guest lecturer and an adjunct graduate faculty at the Russian Juridical Academy, Kaplan University, Moravian College and others.

We provide peace of mind!™

2011-01-01T17:55:00.000-08:00

Panama City by Juliette

Happy New Year! ¡Feliz Año Nuevo! C Hoвым Годом!

From our office in sunny Panama Republic – the thriving little gem of Central America and the gateway to Latin America – visit with us!

Best wishes,

Juliette M. Passer & the Team

Panama City Rising - 2010 Photos by Juliette Passer

2010-12-29T15:27:00.000-08:00

2010-12-17T14:44:00.000-08:00

SUMMARY

(Based on article from LA PRENSA newspaper dated Decebmer 10,2010)

Panama Canal Suspends Operations

The transit of ships through the Panama Canal was suspended temporarily yesterday from 12: 00 noon because of the record level registered at Gatun and Alajuela lakes after the continuous rains.

Gatun Lake, whose maximum level is 88.5 feet above sea level reached 88.56 feet, forcing the opening of the gates to release the water. The Alajuela Lake with the maximum level 252.0 feet, with the constant rain reached 257.6 feet above sea level.

The Executive Vice President of Operations of the Panama Canal Authority (ACP) Manuel Benitez said “the measure was adopted because transits through the Canal could have been affected by the current of the Chagres River, which flows into the waterway at Gamboa, in view of the spill at Alajuela.”

After the order of suspending Canal operation, PANAMAX vessels were stranded along the canal until the locks were back in operation. Although the ACP always suspends temporarily operation in some of the locks, be it for some maintenance task or form some incident, yesterday the administration ordered the suspending operation at all the locks.

The last time the canal was paralyzed for more than one day was during December 20, 1989 after the U.S. invasion of Panama.
The alert situation led to a meeting among the top ACP authorities to evaluate the situation and to determine the normalizing of operation during the next few hours
EXPANSION OPERATIONS

The rains also affected the expansion operations especially in the Atlantic sector where the rains have been more persistent. A source linked to the task of design and construction of the third set of locks stated that suction pumps have been placed to extract the water in areas where there are excavations.
EVACUATION

Yesterday, the ACP, coordinating with local authorities, evacuated about 50 residents of the Guayabalito and Santa Rosa communities in the lower part of Madden Dam Lake which feeds Alajuela Lake.

The ACP warned that the communities near the Chagres River, as well as Nuevo Vigía Salamanca, and Boqueron- on the upper part of the dam should be placed on state of alert pending instructions from the authorities.

The ACP said that the preventive spill of water through the Gatun Spillway also affected automobile traffic through the bridge connecting the towns of the South Coast of Colon. It asked residents of the towns in that sector to avoid travel due to the limited use of the bridge.

As part of the actions coordinated with other authorities. A system was devised to move the people in case of an emergency.

Summary by Juliette Passer, Esq.

A bit of Chinese wisdom for all of us!

2010-12-04T09:23:00.000-08:00

An elderly Chinese woman had two large pots, each hung on the ends of a pole which she carried across her neck.

One of the pots had a crack in it while the other pot was perfect and always delivered a full portion of water.

At the end of the long walks from the stream to the house, the cracked pot arrived only half full.

For a full two years this went on daily, with the woman bringing home only one and a half pots of water. Of course, the perfect pot was proud of its accomplishments. But the poor cracked pot was ashamed of its own imperfection, and miserable that it could only do half of what it had been made to do.

After two years of what it perceived to be bitter failure, it spoke to the woman one day by the stream. “I am ashamed of myself, because this crack in my side causes water to leak out all the way back to your house.”

The old woman smiled, “Did you notice that there are flowers on your side of the path, but not on the other pot's side?'”

“That's because I have always known about your flaw, so I planted flower seeds on your side of the path, and every day while we walk back, you water them. For two years I have been able to pick these beautiful flowers to decorate the table. Without you being just the way you are, there would not be this beauty to grace the house.”

Each of us has our own unique flaw. But it's the cracks and flaws we each have that make our lives together so very interesting and rewarding. You've just got to take each person for what they are and look for the good in them.

SO, to all of my friends and colleagues, have a great day and remember to smell the flowers on your side of the path!

Have a great day!
Juliette

Panama City’s Punta Pacifica is growing by leaps and bounds, recent photos by Juliette Passer

2010-11-24T09:47:00.000-08:00

During the first six months of this year, tourist activity increased by 9.6% in Panama, summary by Juliette Passer

2010-11-09T15:53:00.000-08:00

SUMMARY

(Based on article from PANAMA AMERICA Oct 16, 2010)

Panama Tourism and the Canal

Although the Panama Canal reflected a decrease of 3.3% in revenue during the first six months of the totaled US $871.5 million. The Canal is one of the most important sources of income to the Republic.

According to the Panama Tourist Authority (ATP). The Canal Revenues amounted to US $871.5 million during the first six months of this year. Meanwhile, the Tourist Authority of Panama (ATP) advisor Ernesto Orillac said that new investments in restaurants, malls and others projects have transformed the area into one of the most productive sectors of the country. Purchases by tourists have become an important source of revenues and made tourism an important productive sector. There are two hotels and one condo-hotel being built in the in the Albrook Mall area.

During the first six months of this year, tourist activity increased by 9.6%. The total number of tourists arriving was 652,000, which is 10% more than during the same period last year. Many international fairs are being held in Panama now increasing tourist incentives. Hotels reported 3,847 rooms occupied during this period which is more than the 3,437 rooms during the same period last year.

The ATP is making plans to provide transportation to in-transit tourists to take them to Metro Mall for their purchases. This initiative is not new; it is also being used in Miami.

Angelo Paredes, president of the Panama Association of Tour Operators says there has being an increase in tourism since 2007. The Cruise Ship season started yesterday so these figures will be more attractive in the coming months.

Finally, the Government reports it is planning to offer The Atlapa Convention Center free for events activities. This offer would increase the number of people coming to Panama as well.

Assembly Passes Parts Of Law 30 (Aviation, Environment) suammry by Juliette Passer

2010-11-03T09:40:00.000-07:00

Assembly Passes Parts Of Law 30 (Aviation, Environment)

The Panama National Assembly passed two parts of Law 30, summarized by Juliette Passer in the prior post, about promoting the development of commercial aviation and general environmental matters.
Mario Wilson of the Commercial Pilots Union said he was pleased with the measure because it upholds the agreements reached at the negotiating table benefitting commercial airline pilots.

Meanwhile, Yessica Young of the MarViva Environmental Foundation said that although some of the articles were not repealed, consensus was reached on the importance of environmental measures to improve the country’s situation.

Summary by Juliette Passer, Esq. and Mario Talavera

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www.panamanagement.com

Innovative Trump Ocean Club is nearing completion in Panama City, photos by Juliette Passer

2010-10-27T17:46:00.000-07:00

Innovative Trump Ocean Club is nearing completion in Panama City, photos by Juliette Passer - see at http://picasaweb.google.com/jmpasser

PANAMA CANAL AUTHORITY closes Fiscal Year 2010, summary by Juliette Passer

2010-10-20T10:04:00.000-07:00

Summary

Article from La PRENSA Newspaper in Panama City
PANAMA CANAL AUTHORITY closes Fiscal Year 2010 with
US $1,482 million revenue

On September 30, the Panama Canal Authority (ACP) closed the Fiscal Year with the total of 300.7 million tons of cargo handled, totaling $1,482 Million revenue. ACP administrator Alberto Aleman Zubieta stated that this figure represents only tolls and does not include other operations like the sale of electric energy and drinking water.

There was a growth of 1.6 million tons of cargo compared to the same period last year according to the Universal System of the Monitoring Ships in the Panama Canal. Aleman Zubieta said that he was very pleased with having surpassed three hundred million tons in a difficult year for world economy.

In 1914 during the first year of operations, the Canal registered 1108 transits, about 3 ships a day. The most transits effected was in 1970 with 15,523.000 tons, an increase attributed to the Vietnam war - at present the Canal averages 14,000 transits annually, while the size of the ships has increased. Several important world events have affected the Panama Canal. First there was the Great Depression of 1929; afterwards between 1939 to 1945 operations diminished drastically because of the Second World War. During the 1980s there was an increase of up to 200,000 tons because the of the oil shipped from Alaska. When the Alaska pipeline was opened, this figure went down to 160 million tons.

Summary by Juliette Passer, Esq. and Mario Talavera

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www.panamanagement.com

PANAMANIAN AIRLINES PLAN TO INCLUDE BOCAS DEL TORO AND DAVID IN REGULAR SCHEDULE, summary by Juliette Passer

2010-10-11T16:39:00.000-07:00

PANAMANIAN AIRLINES PLAN TO INCLUDE BOCAS DEL TORO AND DAVID IN REGULAR SCHEDULE
Summary by Juliette Passer

Aero Perlas Airlines manager Nestor Echevers said that these two cities will be included in a global reserve system like Amadeus and Sarber. Joseph Mohan, COPA Airlines (the Panamanian airline) Vice President said talks continue with Air Panama to connect these two destinations with this purchase of a single ticket. He said that if no agreement is reached, COPA will consider buying its own planes or to deal with another airline. The article discusses the procedures to be followed by passengers from these destinations.

SUMMARY by Juliette Passer

2010-10-07T17:35:00.000-07:00

SUMMARY by Juliette Passer
(Based on article from LA PRENSA newspaper)

PANAMA CANAL AUTHORITY closes Fiscal Year 2010 with
US $1,482 million revenue

On September 30th the Panama Canal Authority (ACP) closed the Fiscal Year with the total of 300.7 million tons of cargo handled, totaling US $1,482 Million revenue. ACP administrator Alberto Aleman Zubieta stated that this figure represents only tolls and does not include other operations, such as the sale of electric energy and drinking water.

There was a growth of 1.6 million tons of cargo compared to the same period last year according to the Universal System of the Monitoring Ships in the Panama Canal. Aleman Zubieta said that he was very pleased with having surpassed three hundred million tons in a difficult year for the World economy.

“LOCAL CURRENCY OR THE DOLLAR? THAT IS THE QUESTION” summary by Juliette Passer and Mario Talavera

2010-10-02T18:59:00.000-07:00

Summary

Article from EL FINANCIERO supplement
Of LA PRENSA September 21, 2010 entitled
“LOCAL CURRENCY OR THE DOLLAR? THAT IS THE QUESTION”

Panama has always had the dollar as its national currency. The time has come for a change. In March 1988 the U.S. Government froze the funds held by the Banco Nacional de Panama at the FEDERAL RESERVE SYSTEM in New York. That should have been warning enough for Panama to establish its own bank.

The value of the dollar dropped in 1995. At that time well-known financial expert Jose
Nessin Abbo proposed the free circulation of several currencies in Panama. The United
Nations has also suggested a new currency to replace the dollar. What is Panama waiting for? It seems that this problem will not be solved until the dollar collapses, or the
international community agrees on a system to replace the present one. After 150 years of using the dollar, Panamanians have the idea that the dollar is our national currency. This problem cannot last much longer.

The housing bubble has been deflated. The price of gold has doubled, and there seems to be no political will in the United States to face the problem. The U.S.A. is waging a $2 billion war and plans to expand the war to other areas. Other Latin American countries have dollarized their economy, but for different reasons from Panama.

Now Panama has a Canal and a solid economy that generates thousands of millions of
Dollars. Brazil, Colombia, Chile and Peru have Central Banks that function perfectly. There is no reason for Panama not to follow their example.

The truth is that the dollar will collapse sooner or later. The collapse could be caused by a political or economic shock or as a result of an agreement among the great powers. From a historical viewpoint, this phenomenon is inevitable.

Summary by Juliette Passer, Esq. and Mario Talavera

Trust experience and knowledge.TM

www.panamanagement.com

The IMF has predicted a 6% increase in economic growth for 2011 for Panama, summary by Juliette Passer

2010-09-23T20:16:00.000-07:00

SUMMARY
by Juliette Passer
(Based on article from EL FINANCIERO Annex, LA PRENSA newspaper dated September 14, 2010 by Mario A. Muñoz)

When the Assemblymen talk about approving a record budget for 2011, it is crucial to find out where the financing is going to come from.

Panama’s 2011 budget will be 13 billion dollars as compared to other Latin American countries: Costa Rica’s is 11 billion, El Salvador is 3.7 billion and Paraguay is 8.284 billion.

According to the comments by economist GUSTAVO CHELLEW relying on the data from the Ministry of Economy and Finance - government revenue has increased by 4.8% in 2010, so real income increased by $337.7 million over same period in 2009. This is an increase of 15.8% up to July 2010. According to the foregoing, public finances have been consolidated and are, therefore, sound. This is the basis for sustainable economic and social development. This situation will allow the Government to maintain public policies seeking fairness in distribution of income. For example, there was a decrease in the income tax (Law 8 of 2010) that benefitted 90,000 employees earning less than $50,000 per year.

All the foregoing is based on expected income for 2011 and on a budget execution of 90% with a real economic growth of about 5% in the Gross National Product for 2011 similar to that of 2010. The banking system has recommended generating finances. Besides, personal consumption has increased by 6.8% which reflects the dynamics of economic growth for 2011.

The IMF has predicted a 6% increase in economic growth for 2011.

More projects nearing completion in Panama on Avenida Balboa, photos by Juliette Passer

2010-09-16T14:43:00.000-07:00

More projects nearing completion in Panama on Avenida Balboa

More photos of Panama City from Juliette Passer – Q, Arts and Hilton projects

2010-09-13T06:57:00.001-07:00

More photos of Panama City from Juliette Passer – Q, Arts and Hilton projects:

CLIMA DE INVERSIONES DE PANAMA

2010-09-11T10:59:00.001-07:00

CLIMA DE INVERSIONES DE PANAMA
Por Juliette Passer

PANAMA ofrece un clima único para inversionistas extranjeros. Los factores más importantes para tener en cuenta son:

• El dólar de U.S.A. es de libre circulación

• No hay control de tasas de cambio

• La Constitución da igual trato a ciudadanos locales y extranjeros

• Tiene una de las Leyes Corporativas más flexibles del mundo. Basada en el Código de Delaware, al igual que la disponibilidad de otras formas de entidades legales, incluyendo a Compañías de Riesgo Limitado

• No hay restricciones a inversiones 100% extranjeras

• No hay restricciones a fusiones, adquisiciones, o inversiones conjuntas

• Alto porcentaje de fuerza laboral capacitada y bilingüe

• Incentivos favorables para inversión y finanzas

• Excelentes puertos, aeropuertos y telecomunicaciones

• Facilidades excelentes de hoteles y suites para ejecutivos

• Ambiente bancario excelente y estable, con más de 65 bancos

• Internacionales y locales, sucursales y oficinas representativas

• Una de las Zonas Libres más grandes (en Colon)

Investment Climate of Panama by Juliette Passer

2010-09-10T11:19:00.000-07:00

Panamá Investment Climate
By Juliette Passer

Panama offers unique business climate for foreign investors. Major factors to be considered are:

The U.S. Dollar is legal tender

Total absence of exchange controls

Equal treatment of foreign and local citizens under the Constitution

One of the most flexible Corporations laws in the world, based on the Delaware Code as well as availability of other forms of legal entities, including Limited Liability Companies

No restrictions on 100% foreign owned investments

No restrictions on mergers, acquisitions, or joint ventures

High percentage of skilled and bilingual labor force

Favorable investment and financial incentives

Excellent ports, airport and telecommunications

Excellent Hotels and business executive suite facilities

Excellent and stable banking environment, with over 65 international and local banks, branches, and representative offices

One of the largest Free Trade Zones in Colon

Law 30 in Spanish

2010-09-09T09:51:00.000-07:00

For our Spanish-speaking readers – Panama Law 30 by Juliette Passer in Spanish:

Trust experience and knowledge™.

“Confíe en la Experiencia y el Conocimiento”

Ley 30 de Panamá del 12 de junio de 2010
por Juliette Passer

Una mezcla de reglamentos, la nueva Ley 30, también conocida como la Ley “9 en 1”, fue aprobada por la Asamblea Nacional de Panamá el sábado 12 de junio y firmada como Ley por el Presidente Ricardo Martinelli.

De un plumazo, la Ley modifica los Códigos Laborales, Judiciales, y Criminales, al igual que otras seis Leyes. Estas reformas controversiales fueron metidas en un proyecto de Ley presentado para aumentar la inversión en aviación comercial que inmediatamente causaron malestar público en todo Panamá, mientras aumenta la controversia acerca de la aprobación de la Ley 30.

Esta controversia - según Juliette Passer - se enfoca principalmente en dos medidas que han molestado a dos distintos grupos de intereses panameños: los ambientalistas, que nunca han tenida mucha influencia en la política panameña, y los Sindicatos obreros que si han tenido mucha influencia en ese sentido. Los ambientalistas están preocupados por las disposiciones que permiten que los proyectos de construcción continúen avanzando sin el debido estudio de impacto ambiental cuando el Gobierno considere que existe un “interés social” en construir el proyecto.

Los Sindicatos obreros opinan que la nueva Ley interfiere en su territorio y protestaron en las calles. La fuerza tradicional de los Sindicatos en Panamá se basaba en la protección que les concedía el Código de Trabajo y el bloque de votos que podían obtener en unas elecciones. Sin embargo, su fuerza política comienza a debilitarse. La Ley 30 contiene disposiciones que permiten a obreros que pertenecen a sectores sindicalizados, tales como la construcción, a decidir si quieren o no pagar sus cuotas sindicales; antes de la nueva Ley, las cuotas sindicales eran descontadas del sueldo automáticamente.

El Articulo 12 de la Ley 30 dice:

“El Artículo 373 del Código del Trabajo dice lo siguiente: Artículo 373 – El patrono no está obligado a deducirle al empleado cuotas ordinarias ni extraordinarias que esten establecidas a favor de un sindicato. El obrero que desea pagar las cuotas ordinarias o extraordinarias establecidas por un sindicato, deberá pagarlas voluntariamente.”

La Nueva Ley también permite al Gobierno adoptar medidas más fuertes contra las huelgas y a usar a obreros no sindicalizados. Esta batalla se libró en los Estados Unidos y el Reino Unido en los años 1980s; ahora se está comenzando a librar en Panamá.

La base de la Ley contiene elementos relacionados a la aviación comercial, y especialmente una codificación de un requerimiento para forzar a compañías panameñas de aviación, tales como COPA, a emplear a un 85% de panameños, incluyendo pilotos. También contiene nuevos requerimientos y restricciones acerca de mecánicos y técnicos de aviación – la mayoría extranjeros.

La lista de otras reformas incluye permitir a patronos a emplear a obreros no sindicalizados para reemplazar los que están en huelga y ordena a la policía a tomar control de los sitios afectados por las huelgas. La Ley “9 en 1” también aumenta la pena para el tráfico humano y falsificación de documentos, pero rebaja las penas a oficiales de la policía que cometen crímenes durante su trabajo. Juliette Passer termina diciendo que es una Ley rara, parecida a las que vemos en Washington cuando Leyes importantes contienen un sin número de disposiciones no relacionadas.

© 2010, Juliette M. Passer, Esq.

Acerca de la autora:

Juliette M. Passer es una abogada estadounidense con más de 19 anos de amplia experiencia internacional transaccional en finanzas corporativa y de proyectos, al igual que en nuevos medios y comercio. Juliette Passer tiene un título (cum laude) del Cardozo School of Law y estudió Ley Soviética en la Columbia University School of Law. Ella ejerció la abogacía con la firma internacional de abogados Debevoise & Plimpton andPatterson, Belknap, Webb y Tyler en Nueva York especializándose finanza corporativa y de proyectos. Juliette Passer pertenece al Concejo de Relaciones Exteriores y es parte de las juntas directivas de varias compañías. Ella aparece en el Who’s Who in American Women. Ella, pro bono, representa a artistas, bailarinas y músicos Rusos y Ucranios, Juliette Passer frecuentemente es invitada como oradora a la Facultad de la Academia Jurídica Rusa, Universidad de Kaplan, Moravian College, y otros.

“Le damos paz mental”

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Panama City in Agusut 2010 by Juliette Passer

2010-09-06T13:28:00.000-07:00

Juliette Passer wrote an article on Panama Law 30

2010-09-05T12:10:00.000-07:00

Trust experience and knowledge™.

Panama Law 30 of June 12, 2010

by Juliette Passer

A mixed collection of regulations, the new Law 30, also known as the "9 in 1" law, was passed by the Panama National Assembly on Saturday, June 12, 2010 and signed into law by President Ricardo Martinelli. In one broad sweep, it amends the Labor, Judicial and Criminal Codes as well as six other laws. These controversial reforms were bundled in a bill to increase investment in commercial aviation and immediately stirred public unrest across Panama, while controversy surrounding the passing of Law 30 continues to grow.

This controversy - Juliette Passer explains - is focused mainly on two measures that have upset two different Panamanian interest groups: environmentalists, who have never been very influential in Panamanian politics, and Labor Unions, who have been quite influential. The environmentalists are upset about provisions that allow construction projects to move forward without an environmental impact study, if the government determines that there is a “social interest” in pursuing a project.
The Labor Unions see the new Law as infringing on their territory and took their dislikes to the streets. The traditional strengths of Labor Unions in Panama were the protections they enjoyed in the Labor Code and the bloc votes they could cast in elections; however, their political force is beginning to weaken. Law 30 contains provisions which allow workers in unionized sectors, such as construction, to decide whether or not they want to pay union dues; before the new Law, dues were automatically taken out of workers’ wages.

Article 12 of Law 30 reads:
“Article 373 of the Labor Code will read as follows: Article 373 - The employer is not obligated to deduct from workers in favor of a union ordinary or extraordinary union dues that are established. The worker who wishes to pay the ordinary and extraordinary dues established by the union should pay those dues voluntarily."
The new Law also allows the government to take stronger action against strikers and to use non-union workers. This is a battle that was fought in the 1980s in the US and UK; it’s just beginning to be fought in Panama.

The bulk of the underlying law has contains elements related to commercial aviation, and most of which is a codification of a requirement to force Panamanian aviation companies, such as COPA, to hire 85% Panamanians, including pilots. There are also new requirements and restrictions on aircraft mechanics and technicians - mostly foreigners.

The string of other reforms includes allowing employers to hire non-union replacements for striking workers and requires police to immediately take control of work sites affected by strikes. The "9-in-1" law also increased penalties for human trafficking and falsification of documents, but relaxed sanctions for police officers who commit crimes while on duty. It is an odd piece of legislation, although not unlike some we see in Washington, DC when major laws contain a myriad of unrelated provisions, Juliette Passer concludes.

Copyright 2010, Juliette M. Passer, Esq.

About the Author

Juliette M. Passer is a U.S. attorney, with over 19 years of broad international transactional experience, specializing in corporate and project finance, as well as new media transactions and e-commerce. Juliette Passer holds a JD (cum laude) from Cardozo School of Law and studied Soviet Law at the Columbia University School of Law. She practiced law with the international law firms of Debevoise & Plimpton and Patterson, Belknap, Webb & Tyler in New York, specializing in corporate and project finance. Juliette Passer is a member of the Council on Foreign Relations and serves on boards of several companies. She is listed in Who’s Who in American Law and Who’s Who in American Women. As a pro bono undertaking, she represents Russian and Ukrainian artists, dancers and musicians. Juliette Passer is a frequent guest lecturer and an adjunct graduate faculty at the Russian Juridical Academy, Kaplan University, Moravian College and others.

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Times Online, Sunday May 3, 2009

2009-06-06T19:46:00.000-07:00

Times Online, Sunday May 3, 2009

A multi-millionaire supermarket tycoon has won Panama's presidential elections, in a rare right-wing election triumph for a region that has become used to leftist leaders.

Ricardo Martinelli's success as a business magnate persuaded voters that he was the best person to help Panama survive the global recession, which has slowed the country's recent stellar economic growth.

The leader of the opposition conservative party Alliance for Change pledged to guide the country through the world economic crisis and an ambitious expansion of the Panama Canal.

Electoral Tribunal President Erasmo Pinilla called Martinelli the "indisputable winner" after preliminary results showed him with 61 percent support and governing party candidate Balbina Herrera with 37 percent. Former President Guillermo Endara was a distant third. The winner was announced with 87 percent of the votes counted. The government has struggled to rein in crime and high prices and Mr. Martinelli, 57, managed to win over many low-income voters as well as business leaders who regard him as an ally. "We can't continue to have a country where 40 percent of Panamanians are poor," the self-made millionaire and supermarket owner said in a victory speech. The U.S.-educated, pro-business Mr. Martinelli, who owns Panama's largest supermarket chain, said he would work for a national unity government because "that is what the country is counting on." “Tomorrow we will all be Panamanians and we will change this country so that it has a good health system, good education, good transportation and good security,” he said.

Ms Herrera, a 54-year-old, who served as housing minister under outgoing President Martin Torrijo’s, conceded defeat late on Sunday and promised to respect the results. She vowed to form "a responsible, but very energetic opposition, because we have stopped being a country of economic growth, with our house in order and a canal expansion plan in March."

Election officials said that with 53 percent of voting stations reporting, Mr Martinelli's coalition had won 37 seats in the 71-seat National Assembly and Ms Herrera's bloc had 23 seats.

Panamanians also elected a vice president, mayors and other local officials.

"Martinelli has received strong support and I believe that he can achieve the change he's promised," said Carlos Rodriguez, a 46-year-old taxi driver. "He has had great success as a businessman and now I hope he can do a good job in government."

The victor, whose five-year term starts July 1, will have to guide this poor Central American country through the global economic crisis and the $5.25 billion project to increase the Panama Canal's capacity and allow it to accommodate larger ships.

The canal is Panama's economic motor and both Mr Martinelli and Ms Herrera supported its expansion, but the world's economic woes have generated uncertainty over the project, which is receiving $2.3 billion in international financing. Approved in a 2006 referendum, the project is expected to create about 5,000 direct jobs between 2010 and 2011, when construction is at its peak, authorities says.

The previous government saw its popularity undermined by the global economic crisis, Panama's slowing growth and crime. Panama's economy had grown at an average annual rate of 8.7 percent over the past five years and unemployment fell from 12 percent to 5.6 percent, improvements fueled by foreign and state investment by the Torrijo’s government. But growth has slowed, with economists predicting growth of just 3 percent to 4 percent for the year.
Amid the growing economic gloom, Mr Martinelli played up his business experience as owner of the Super 99 supermarket chain. He vowed to attract foreign investment and promote free trade, particularly with Panama's main trading partner, the United States. Panama has agreed on a free trade accord with the U.S., but the pact has been held up in the U.S. Congress by concerns over Panamanian labor rights and banking rules that could help tax evaders.
Mr Martinelli, who has a degree from the University of Arkansas, lost in his first run for the presidency in 2004 and returned for Sunday's election at the head of a four-party conservative coalition.

Ms Herrera, who ran for the governing coalition led by the Democratic Revolutionary Party, had promised to spread the wealth from Panama City to the poorer province and indigenous communities.

Few problems were reported despite heavy turnout at the country's 2,382 voting stations, observers from the Organization of American States said in a preliminary report issued after polls closed. More than 2.2 million people were eligible to vote.

www.panamanagement.com

Reprinted with permission.

Focus on Investors - Doing business in Panama with your eyes open!

2009-03-29T11:14:00.000-07:00

Trust experience and knowledge™.

Focus on Investors - Doing business in Panama with your eyes open!

Panama is a great place to live and work. In recent years Panama has been growing in popularity among investors, expatriates and retirees alike. Recently popular online publication “International Living” rated it as the No. 1 place to retire in the world, and for good reasons. According to the Economist Intelligence Unit, Panama's economy grew by a historical 11.2% in 2007 after increasing 8.7% during 2006 and this economic expansion is expected to continue in 2008. This is mainly due to substantial growth in the financial and construction sectors, tourism and the commercial expectations placed in the ongoing expansion of the Canal. Panama's dollar-based economy offers low inflation and zero foreign exchange risk. Its legal and regulatory regimes are business friendly. Its government is stable, democratic, and reform minded and actively seeks foreign investment in all sectors, especially services, tourism and retirement properties.

Panama offers a higher quality of living at a lower cost and with less crime than typical Central American destinations, although Panama City is rapidly getting to world pricing. Panama has a wealth of variety to offer whether it is beaches, lakes, mountains or the countryside and prices for real estate purchases with a range of choices for practically any budget.

The Colon Free Zone, the second largest in the world after Hong Kong, is a vital trading and transshipment center serving the region and the world. Panama has no restrictions on the outflow of capital or outward direct investment. Its accession to the World Trade Organization in mid-1997 opened up trade and lowered tariffs.

According to Panama's constitution, nationals and foreigners are treated equally under
the law. Both Panamanian and foreign companies must fulfill the same basic requirements to organize and operate most types of business activities in Panama. There are restrictions on foreigners participating in retail trade and practicing certain professions. In practice, however, there are legal ways to overcome these restrictions. Panama has one of the most modern and flexible corporate law frameworks in Latin America. Panama is an interesting and potentially profitable jurisdiction for licensing agreements and joint ventures as well as routine commercial operations for international companies.

Having listed all the good reasons to invest in Panama, the caveat is - you must be careful, so to paraphrase the famous line from the Wizard of Oz: “This ain’t exactly Delaware, Dorothy!”

Foreign investors, especially from the US and Canada, routinely drop their guard in a deceptively familiar legal environment of Panama, which is based on the Delaware Corporations Law and similar to the Wyoming Limited Liability Company Law, but allows bearer shares and untitled real estate sales.

Panama has a court and judicial system built around a civil code, rather than the Anglo-
American system of reliance upon case law and judicial precedent. Fundamental procedural rights in civil cases are broadly similar to those available in U.S. civil courts; however, the system can be inefficient and prone to abuse. Though the system is improving, many in the business community, both Panamanian and foreign, lack confidence in the Panamanian judicial system as an objective, independent arbiter in legal or commercial disputes, especially when the case involves powerful local figures with political influence. In a few cases the appearance of corruption has been so widely accepted as to constitute conventional wisdom. Arbitration is always a better choice at the Center for Mediation and Arbitration established by the Panamanian Chamber of Commerce or at various European or American arbitration centers and courts.

Since Spanish is the official language in Panama, always make sure the request your transactional documents in English as translations of the Spanish documents and never sign any agreements in Spanish if you do not speak and read the language! Legal documents are not interesting reading, but it is a must for a successful investment.

The Public Register of Panama provides much transparency to the company registrations, recordings of mortgages and liens and for transfer of title to properties, however, it also prone to misuse by unscrupulous parties.

Lastly, but just as importantly, Panama has many experienced attorneys and established laws firms; however, the conflicts of interest rules and ethical standards followed by the Panama Bar are not as stringent as those in the US. Hence again, caution must be exercised. At the very least, ask the partner of the firm to warrant to you that other members of the firm are not involved in representing parties adverse to your interests and transactions and do not use affiliated entities as trustees, if the firm is representing the seller in your purchase transaction. A good local bank can be easily hired as a trustee.

Use your common sense to build a team of advisors you can trust and you will do very well in beautiful Republica de Panama!

www.panamagement.com

Copyright 2008, Juliette M. Passer, Esq.