More Panama Proof

November 18, 2008

Today, November 3rd, the Republic of Panama is celebrating the 105th anniversary of its political separation from neighboring Colombia, an seminal event that marked the rise of the nation's identity and status as an independent republic.

When I wrote about the relative healthy financial status of banks in Panama on Oct. 23, I got some disbelieving inquirers who found it difficult to accept that banks anywhere could be safe these days.

At the time I stated: "Reuters reports (Oct. 13) that Panama's banks are flush with liquidity and well placed to weather the international credit crisis. The country's banking superintendent, Olegario Barrelier, says liquidity in Panama's banking sector stands at around 58% of deposits, with manageable exposure to international markets pummeled by the U.S. credit crisis."

Chinese View

Now the official Chinese news agency (Xinhua) has published a "Special Report: Global Financial Crisis" in which they also conclude that the impact of the ongoing global financial crisis has not emerged in Panama, quoting Carmen Gisela Vergara, Panamanian minister of commerce and industry at a trade forum held in Tokyo.

The report notes that Panama, one of the leading financial centers in Latin America, has suffered less losses in the worldwide financial crisis due to its sufficient liquidity in the banking system.

Canal Expansion

Meanwhile the Panama Canal Authority says that it is confident of winning loans to fund a $5.2 billion expansion to more than triple the 94-year-old waterway's cargo capacity, even as the global credit crisis cuts access to funds and threatens growth.

The massive expansion of the Panama Canal now underway is on schedule to be completed by 2014 - exactly 100 years after the original canal built by the United States opened in 1914. The Inter American Development Bank also is loaning Panama $400 million towards the estimated $6 billion canal expansion costs.

I repeat, all things considered, Panama, with its special pensionado program aimed at attracting foreign residents, and its tax haven status, is worthy of your consideration.

* Discover all about Panama, its history, government, tax haven status and much more, in my extensive 3-volume special report, Panama Money Secrets. Click right here.

Posted in RSS