Panama Investor Blog

Panama Investor Blog

So you’re thinking about Panama? Maybe as a place to invest, live or just spend a few months a year.  Well, you need to do your homework and there is no better place than the Internet to find out about Panama. But, you will have to wade through a lot of information in order to get to what you hope is the truth.

That is, unless you consider a free subscription to Sam Taliaferro’s Panama Investors blog. Why trust Sam? What makes him such a reliable source?

It is not because Sam has lived in Panama since 1997 or because he has invested millions of dollars into Panama’s real estate and resort markets. It is not because he is credited with having started the current Real Estate boom that is bringing billions of dollars of foreign direct investment into the country or the fact that he has been quoted by such important publications as the Economist, Fortune, Financial Times and hundreds of blogs and news articles around the world. It should not be because he is married to a beautiful Panamanian woman and that they have three beautiful Panamanian children. None of these are good enough reasons to trust his judgment.

The real reason can be summed up in two simple words, honesty and Integrity. Sam has the honesty to tell it like is, the good, bad and ugly of Panama, and has been doing so for nearly four years with his Panama Investor blog. He has the integrity to tell you the truth about important issues that may affect your investment, lifestyle or security in the country, even when it may hurt his own investments. This is why thousands of people from all over the world subscribe to this hard-hitting, “tell it like it is” Panama Investor blog.

At least once a week Sam sends out an email to his subscribers with the weeks headlines that may include information on the many changing laws regarding immigration, taxes, security, banking, real estate, structuring and many other subjects. He regularly post articles from local papers and translate what he considers important to his readers. He also regularly posts about tourism and master planned communities all around the Americas in order to compare them to the real estate opportunities that lay in Panama.

Sam spends hours each day scanning the many news articles that come out and filters it down to the important information you need to know. Each post provides commentary on why this matters to him and why it should matter to you. Over 3000 posts are archived in categories so you can find information on just about every investment subject.

So if you want to read blogs or websites that tell you all the great things about Panama, this is not the one for you. But if you want to know about the safety of investing or living in Panama, from someone who really cares about the future of the country, you should subscribe. After all, it’s free, so what do you have to lose except some valuable time. Let Sam spend his valuable time so you can maximize yours!

Canal Administrator wins prestigious maritime award

Congratulations to Alberto Alemán Zubieta for receiving the "International Maritime Prize" from the International Maritime Organization (IMO).

LONDON -- 12/01/09 -- For steadily steering the Panama Canal Authority (ACP) toward a business oriented enterprise focused on customer service, and for successfully initiating the historic expansion of the waterway, ACP Administrator/CEO Alberto Alemán Zubieta received the 2008 "International Maritime Prize" from the International Maritime Organization (IMO) -- the United Nations agency for shipping and maritime issues. Secretary-General of the IMO, Efthimios E. Mitropoulos, presented the award to Mr. Alemán Zubieta during a special ceremony held November 30 at the IMO headquarters in London, the United Kingdom.

Panama Development wins Best in Americas award

The Emerald monkey eco-development project in Bocas del Toro continues to get great press and now has received a Best Development in the Americas award in a number of categories.

November 30, 2009 at 6:00 AM

The project won't be completed until late next year, but Kimberly and Frank DeLape's Emerald Monkey Eco-Luxe Resort & Residences in Panama has already garnered eight  Americas Property Awards. 

The high-profile couple (they co-chaired the 2009 Houston Ballet Ball) were in San Diego recently to receive the honors presented in association with CNBC, the New York Times and Kohler.  

Already a member of the prestigious Preferred Hotels & Resorts family, the development is nestled on Isla Pastor in the Boca del Toro archipelago, just off the coast of Panama. Balinese -inspired villas with private plunge pools and indoor/outdoor baths and showers with private gardens are spread across the property.

Amenities will include a fitness center, gourmet restaurant, spa, dive center and two private beaches. The resort's focus on eco-friendliness includes hydro-electric power, a biomass septic system and on-island transportation restricted to solar-powered golf carts.

All of this has added up to the awards recognition — Best Property, Best Development, Best Interior Design, Best Development Marketing and Best Architecture for Panama. And, for all of the Americas, Emerald Monkey received Best Property, Best Development and Best Development Marketing honors.  

The DeLapes couldn't be happier. The honors will be choice marketing tools for the villas priced from $564,000 in full or from $75,000 for fractional ownership. Rentals are available as well, that aspect managed through Preferred Hotels.

Quarterly report shows continued success for Trump Ocean Club

I was pleased to read the latest report from the Trump Ocean Club titled, Quarterly conference call for investor. The project continues to make great progress in sales and construction, now reaching 94% sold.

Some highlights: • Sales from January to September 2009 amounted to US$ 27.7 million (an average of US$ 3.1 million per month). Management expects sales of approximately US$ 14.2 million for the last quarter of 2009.As a result, total sales for 2009 will reach approximately US$ 41.9 million.

• During the nine months of 2009, eligible receivables had a reduction of US$ 5.5 million. The sales figures in the nine month period generated enough receivables to offset the reduction in this asset
resulting from the successful performance of collections. As a consequence, the collateralization ratio was maintained above the 1.25x level.

• Collections from January to September 2009 amounted to US$ 29.2 million, providing enough funds to cover working capital needs, to replenish the Debt Service Reserve Account by June 2009 and to pay the coupon in November 15th, 2009 mostly from the Collection Account. Management expects collections for the last quarter 2009 of approximately US$ 6.8 million, including those derived from the accelerated payment discount program. This level of cash will allow the Company to fully replenish the DSRA by January 2010 thus having enough funds to cover the May 2010 coupon and also to cover
working capital needs.

• The Company’s liquidity position as per September 2009 is strong with US$ 92.5 million in restricted cash and deposited mainly in the Construction Escrow Account, the Collection Account and the DSRA. 

• The construction of the building (financed with the 2014 notes) continues at good pace. The date for the completion of the concrete structure continues to be March 2010 and the work in technical systems and finishes is currently in the level 35. The completion of the building is planned for August 2010 with delivery of certain units before this date.

• As of October 31st, 2009, the Cost Performance Indicator slightly improved as labor force productivity corresponding to the concrete structure increased. Management expects that the cost deviation over the original plan will be offset with savings arising from negotiations of finishes, technical systems and more improvements in work force productivity.

• As stated in the Independent Engineer’s Report issued on October 31st, 2009, the project specifications have been successfully maintained.

• The project’s safety record remains within the best standards.

Download TrumpOceanClub3rdQuarterReport.

IRS penalties for noncompliance

An article in International Properties caught my eye because it listed the penalties for noncompliance in reporting bank accounts, corporations and other structures by U.S. citizens. I like the way each noncompliance starts out as "A penalty for failing to file the Form XXXX". Thought my U.S. readers might want to know what the slaveholders will do to you should they discover you forgot to inform them of all your holdings. You can read the whole article here.

A short summary of some of the compliance requirements:

• A penalty for failing to file the Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts, commonly known as an “FBAR”). U.S. citizens, residents and certain other persons must annually report their direct or indirect financial interest in, or signature authority (or other authority that is comparable to signature authority) over a financial account that is maintained with a financial institution located in a foreign country if, for any calendar year, the aggregate value of all foreign accounts exceeded $10,000 at any time during the year. Generally, the civil penalty for willfully failing to file an FBAR can be as high as the greater of $100,000 or 50 percent of the total balance of the foreign account. Non-willful violations are subject to a civil penalty of not more than $10,000 for each account and for each year that the account is unreported.
• A penalty for failing to file Form 3520, Annual Return to Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. Taxpayers must also report various transactions involving foreign trusts, including creation of a foreign trust by a U.S. person, transfers of property from a U.S. person to a foreign trust and receipt of distributions from foreign trusts. This return also reports the receipt by U.S. persons of gifts from foreign entities. The penalty for failing to file each one of these information returns, or for filing an incomplete return, is 35 percent of the gross reportable amount, except for returns reporting gifts, where the penalty is five percent of the gift per month, up to a maximum penalty of 25 percent of the gift.
• A penalty for failing to file Form 3520-A, Information Return of Foreign Trust With a U.S. Owner. Taxpayers must also report ownership interests in foreign trusts, by U.S. persons with various interests in and powers over those trusts under section 6048(b).The penalty for failing to file each one of these information returns or for filing an incomplete return, is five percent of the gross value of trust assets determined to be owned by the U.S. person.
• A penalty for failing to file Form 5471, Information Return of U.S. Person with Respect to Certain Foreign Corporations. Certain U.S. persons who are officers, directors or shareholders in certain foreign corporations (including International Business Corporations) are required to report information. The penalty for failing to file each one of these information returns is $10,000, with an additional $10,000 added for each month the failure continues beginning 90 days after the taxpayer is notified of the delinquency, up to a maximum of $50,000 per return.
• A penalty for failing to file Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation. Taxpayers are required to report transfers of property to foreign corporations and other information. The penalty for failing to file each one of these information returns is ten percent of the value of the property transferred, up to a maximum of $100,000 per return, with no limit if the failure to report the transfer was intentional.
• A penalty for failing to file Form 8865, Return of U.S. Persons With Respect to Certain Foreign Partnerships. U.S. persons with certain interests in foreign partnerships use this form to report interests in and transactions of the foreign partnerships, transfers of property to the foreign partnerships, and acquisitions, dispositions and changes in foreign partnership interests. Penalties include $10,000 for failure to file each return, with an additional $10,000 added for each month the failure continues beginning 90 days after the taxpayer is notified of the delinquency, up to a maximum of $50,000 per return, and 10 percent of the value of any transferred property that is not reported, subject to a $100,000 limit.

Banco General awarded "Best Bank in Panama in 2009

The financial magazine LatinFinance General Bank awarded "Best Bank in Panama in 2009" in its latest edition of the Bank of the Year awards, results published in the November issue and on its website www.latinfinance.com.

To choose the best banks in each country, the magazine takes into account, among other variables, path consisting of the results and demonstrated capacity for growth and innovation.

Panama, among the best according to Financial Task Force (FATF)

According to an article in La Prensa, Panama is rated just behind the U.S. in compliance with money laundering regulations.

The enforcement staff report conducted by the Financial Action Task Force (FATF), based on a review of compliance with its 40 recommendations for the prevention of money laundering, plus nine special recommendations on terrorist financing, remains to Panama between top with best rating.

  The report, which summarizes the evaluations of FATF since 2005 and is updated the first quarter of 2009, noted that Panama stands fourth in the list of 44 countries and jurisdictions participating in the evaluation, with only below States USA, Singapore and Belgium, reports the Superintendency of Banks.

 From the list of the 40 +9 recommendations evaluated, Panama met in full and largely 39 and partly with nine of the recommendations specified by the FATF for the prevention of money laundering and terrorist financing.

 The FATF is an intergovernmental body whose purpose is to develop and promote measures to combat money laundering and terrorist financing.

Great advice for buyers and developers from Donald Trump Jr.

The son is a lot more down to earth than his father in these difficult times for developers. From International Property Journal.

In an interview with CityscapeConnect, Donald Trump, Jr., the executive v.p. of development and acquisition for his father’s company, wanted to make it clear he’s “not necessarily the spoiled brat that many people would love to envision me as.”

Once he cleared that up, Heir Trump focused on business and he wasn’t painting the same rosy pictures favored by his perpetually cheerleading father.

For buyers, his negotiating advice was to make an offer. “You don’t get anything you don’t ask for,” Trump, Jr. said. “Try for it, you’ll probably get it.”

Trump urged developers to grasp a better understanding of the reality of the market. “The days of thinking you’re going to sell average building sell outs at $3,000-plus a square foot anywhere is over,” he said. “It doesn’t exist anymore.”

Developers need to stop “trying to squeeze blood out of a rock” and make deals, he said. “It’s more important to make deals and create velocity.”

New U.S. tax on cosmetic surgery may drive more business to Panama

They will have to tax a lot more than just elective cosmetic surgery in order to pay down the debts being incurred, but at least it may help Panama. Come on down!

From Russia today

Desperately seeking money to pay for new health care legislation, Senate majority leader Harry Reid is proposing a 5 percent tax on elective cosmetic surgery and procedures.

With all the nipping and tucking and lifting and botoxing that members of Congress have recently indulged in, it's difficult to imagine that he will find much support. Nevertheless, some senators who have already had their fill of fillers and thus feel free to tax the sagging and wrinkly laggards, need to consider the following.

Cost of canal to go to $375 million

100 years ago this came out in the papers in America. What I find most interesting is the estimated cost of construction.

An upbeat annual report by the Isthmian Canal Commission was released yesterday by the War Department, and included an explanation for the increase in the project’s estimated cost, to about $375 million from $144 million. “Prosperous conditions in the United States, combined with the unsavory reputation that the Isthmus had regarding its healthfulness, made it necessary, in order to secure labor, to increase the wage scales from 30 to 60 per cent over those paid in the United States for similar classes of work,” the Chief Engineer, George W. Goethals, wrote. “Certain gratuities, as additional inducements, were also offered, which in the main have since been continued. Moreover, the provisions of the eight-hour law were made applicable to the isthmus.” Canal Report Shows Good Progress Made; Col. Goethals’s Summing Up of Year’s Work at Panama Published by War Department; Explains Increase in Cost; Subsistence Department Runs 17 Hotels — 12 Schools for White Children and 17 for Colored Maintained..

Download Canal cost increase

Lets go flying

I know many of my readers are flying enthusiasts like myself so I wanted to share information about a fascinating aircraft I have been watching for some time come to fruition. Imagine a craft that lands on both land and water and can be easily trailered. Besides incredible function the plane is just plane cool. I have a deposit on one which may be delivered in 2011-12. Go to the ICON website for more info.

Sam's tips on residential project marketing

 This post is part important marketing information and part shameless self promotion, both of my genius at web design, copy-writing and marketing and to get your eyeballs on my projects new website.

I have struggled over the years with getting websites built in a timely and cost effective fashion. I have great guys with talent to do the work, but I still have to provide the content which is a very time consuming job in itself. I then have to contact them for every little change I want to make and it takes them time to get to it and additional costs. I have tried different programs to let me build a website myself, but all were too complicated and the end product never looked very good. Besides, I am usually too busy as a project developer to spend time learning web design.

So, the other day my hosting service sent me an email about a new program that would allow me to Drag and Drop all the elements onto a page while online and publish it with a press of a button, very similar to how I post this blog. I did not have to know HTML or FTP, SWF or anything more than I do when blogging.  It really is web site design for dummies. I built the site in about 12 hours, start to publish! Now, I don't have a dog in this hunt and won't make a dime if you end up using this program, but it is so cool that I wanted to share it with you and get some publicity at the same time.

Now for some helpful info if you have a development project you want to promote.

If you will take the time to look over the site there is a marketing theme that I have used throughout the site that development promoters may want to take notice of. In my first page I am trying to connect with my potential client by conveying specific information about the quality of the project, its amenities and access to THINGS. Access to THINGS is extremely important to WOMEN who plan on living any length of time in the property. And guess what, it is women that you must convince to buy in your project. After over 175 sales I know for a fact that it is usually the men who have done the research and want to move to Panama, but it is the women who makes the final decision on where they will settle. As a side note, there are a number of single or widowed women living in Valle Escondido which greatly surprised and pleased me. For a women to pick up stakes and move to a foreign land tells you something about her and the project. She is extremely independent and the project makes her secure and happy enough to go it alone.

I go on to tell about the people who inhabit our piece of paradise so they can connect and feel that they could fit in. I provide some information on the activities and amenities beyond our gates so they can see that there is more to do than just be in this project. There is a residents testimonial page which is extremely important. Just as TravelAdvisor testimonials can make or break your lodging business, great testimonials can really help people connect with your project.

The second page goes into my story of why I selected and built Valle Escondido. I call it the "safe haven" story. Just about every MAN who comes through our sales doors say they connect with it, because they too are looking for a safe haven. Think of it like this. Men are always seeking safety for their ass and their assets and women are thinking  more about comfort and knowing there are others like them to connect with. Nothing new here, so if you apply that line of thinking into your marketing you may have similar success.

Then there are details on all aspects of the projects amenities such as HEALTH AND BEAUTY SPA, fitness center etc.. Most things catering to women. And then there are lots of photos. Of course I have the benefit of the project being nearly completed and do not have to resort to computer renderings, but also the handicap of little else to sell. But,  I don't really care because I want to retire and enjoy the fruits of my labor and my wife wants to work and run the business as she has for the past 5 years. A happy wife is a busy wife I always say. I will hopefully live my life as do the other 350 or so folks that live in Valle Escondido, enjoying the third age as they now call it.

The site really was built in 12 hours, which I think is very fast when you consider I am the copywriter and had to hunt down all the photos out of the many thousands in my files. Not to mention my first time using the program. You can go here to view my site and here to find out more about the program. They let you use it free to a certain level and then it is $10 a month. Cheap IMO. Please feel free to comment on my work as I can surely use some feedback. Don't worry about hurting my feelings, after cancer treatment I am impervious to pain!

Tax (in)Justice Network says Panama is "a grubby little tax haven"

Several U.S. advocacy groups are climbing on the band wagon to try force Panama to become more compliant in their tax information exchange.  The have names such as "Tax Justice Network" and "Public Citizen", names which would indicate they are advocates for freedom. What they really have in mind is enslavement of the populace by eliminating any option one might have to protect his/her wealth from the greedy politicians and tort lawyers who support them.  They are really working for the state under the guise of working in your best interest!

The Tax Justice Network is an organization that is closely aligned with the anti-tax haven ideals of the OECD except they see the OECD as hypocritical due the the fact that several member countries are the largest tax havens in the world with the U.S. and Great Britain leading the way. They want tax justice for the state, certainly not for the individual. They don't like tax competition and firmly believe that taxes should be universal and high. Here is how they see themselves: The Tax Justice Network (TJN) is an international, non-aligned coalition of researchers and activists with a shared concern about the harmful impacts of tax avoidance, tax competition and tax havens. www.taxjustice.net

Now they have focus on Panama because of the possible trade agreement with the U.S..

Here is an excerpt from their story; “While some offshore jurisdictions around the world have said they will no longer use bank secrecy to help tax cheats, Panama apparently still refuses to negotiate a tax information exchange agreement with the United States. We should not reward Panama with a free trade agreement unless and until it agrees to disclose information on U.S. tax dodgers,” said Sen. Levin."

Public Citizen has also come out with an attack on Panama with this supposed report titled "Panama FTA Would Undermine  U.S. Efforts to Stop Offshore Tax-Haven Abuse and Regulate Risky Financial Conduct " You can download this PDF report here.

 

Panama #1 on Sore Butt Index

Although this may initially look like a put down of Panama it is actually a very positive aspect of the country. Were not talking about Panama being a pain in the ass, although many would argue that it is, were talking about paved roads from the airports in Central American countries and how it affects life and investment. My friend Kevin Brass has the story on his International Property Journal.

Excerpts: In the paved-road-from-airport metrics, Panama is the leader with 80 percent of airport roads paved, according to the study Gonella’s Reveal Real Estate, which tracks the market. Costa Rica was second, with 70 percent of its roads paved from the international airport (thanks to the road from Liberia, in the north.) Then there’s a huge drop-off to Nicaragua, where only 20 percent of the roads are paved, according to Reveal.

Read the rest at IPJ...

Panama make Forbes top 10 retirement haven hit list

Although much of what I post deals with economic issues and their affect on business, the fact is for those looking for quality of life and low cost of living, no place can beat Panama for retirement IMO. Forbes came out last month with it's top 10 retirement destinations and Panama was listed forth on their list with the only negative mentioned as "pockets of corruption".

Positives: Panama has almost everything: year-round sun, low taxes, massive discounts for seniors, first-world amenities, quality private hospitals, bird-filled rainforests, a dollar economy and easy flights from the U.S. Panama City is considered safest of all Central American cities, with worldly buzz because of the canal, and a World Heritage Site.

Excerpt and link to story;

Forbes cannot promise retirees "paradise on $30 a day." Quite the opposite. We promise seniors wishing to move out of the U.S. that they will not find paradise anywhere. Each country is unique--with assets and liabilities--and the key to successful retirement as an ex-pat is carefully matching your own personal priorities and finances to the country that has caught your eye.

To help matters along, Forbes has compiled its own list of the 10 best retirement havens, based on a wide variety of criteria ranging from safety to retiree-friendly visa requirements to decent medical care. The countries on our hit list: Austria, Thailand, Italy, Panama, Ireland, Australia, France, Malaysia, Spain and Canada.

read the rest at Forbes.com

An alarming commentary in The Wall Street Journal

Although this does not directly affect Panama yet, it is of such importance that I wanted to share it with my readers. Bob Bauman wrote a great overview of what is going on in his Offshore Blog.

Excerpt:

Americans (and those from every nation) who love their country should indeed read this amazing, alarming document. And when you do read the 181 pages of this draft "United Nations Framework Convention on Climate Change" you’re in for some nasty surprises.

Americans in the Dark

If you haven't heard about it, that's because none of our otherwise talkative political leaders have told us what the drafters have already put together for national leaders to consider and possibly sign at a global conference on "climate change" in Copenhagen Dec. 14 - 21.

Enter Lord Christopher Monckton (below). The UK Conservative Party member and former adviser to U.K. prime minister Margaret Thatcher gave an address at Bethel University in St. Paul, Minnesota, last month that had made quite a video hit.

So far there have been more than one million hits on the YouTube post of his address. It deserves millions more because Lord Monckton warns that the aim of the Copenhagen draft treaty is to set up a super world transnational "government" on a scale no one has ever before seen. He asks the valid question: "Is Obama poised to cede U.S. sovereignty to the UN?" You can guess the answer.

Read the whole story here

Los Faros non-progress report

The $600 million mega project, Los Faros was announced back in 2006 with much fanfare and held up as additional proof that Panama was the choice of major project developers from around the world. With over 2000 apartments and a 200 room hotel, it was scheduled to be completed in 2009.

The name Los Faros, which in English ironically means "lighthouse", has apparently led investors into the dangerous reefs of the many partially completed or never started Panama projects. The Spanish company behind the project, Grupo Mall, was touted as a major player and a sure bet. I was in Spain at the residential tourism  Expo in 2006 where I witnessed the hype first hand as the glitzy marketing of the project was being touted mostly to European investors. Grupo Mall's booth was one of the biggest and most extravagant in this huge exposition with thousands of developments from all over the world. A model of the project showed the entire city with this mega structure dominating it. 

I made a post with photos about the project in April 2006 while at the expo and if you read the comments below the post, you will see how many promoters with "special connections and deals" responded to an inquiry to buy expressed by a reader. This will give you some idea of the hype associated with this project.

That was then and this is now.  Almost four years later a hole in the ground  sits where once grandiose dreams of lifestyle were to be made. Nothing more to show but scale models, computer renderings and unfulfilled contracts. Many people in good faith made down payments on apartments and now more than likely will not see a return of any kind as Grupo Mall apparently has no property in their name in Panama. They now tell investors that they were only the "marketing agent" and were hit by the word financial crisis. One needs only look at the dates promoted by the company (Start in 2006 finish in 2009) to see that if that were the case, the project should have been more than half completed when the crisis hit. Panama is littered with such projects and I would bet there are hundreds of millions  of dollars in deposits that will never be returned making Panama one of the biggest real estate debacles in the western hemisphere, and it ain't over yet!

Photo From La Prensa

Panama shipyards down 25%

One would think that with fewer ships being used worldwide the demand for repairs of those in operation would be higher, but as this story points out, ship owners just don't have the money to repair their vessels.

Wilfredo S. Jordan
wjordan@prensa.com wjordan@prensa.com

  Shipbuilding is an important link in the development of any economic activity linked to the cargo or the exploitation of maritime resources

  The shipbuilding industry, which includes work for the construction and repair of ships, has been hard hit by economic crisis. On average, the repair of boats has dropped by 25% compared with 2008, said chairman of the Chamber of Shipping of Panama, Marvin Castillo.

  Many boats are arrested, the shipowners and shippers do not have the financial resources to carry out repairs.

  "We saw a first half of 2009 was very active, but as the crisis has spread in the maritime sector, has diminished the confidence of international shipowners.  Results are still pending to recover the confidence of the owners in the industry, the repairs to begin again, "Castillo said.

In Panama operate Bayano Shipyard, located in Port Coquira; Shipyard Juan Diaz, Juan Diaz, National Shipyard in Vacamonte; Braswell Shipyard International, Balboa; Shipyard International Veracruz, Veracruz, and Industrial Shipyard Mount Hope, Division Industrial Panama Canal Authority, located in Columbus.

There are also two companies engaged in dry dock repairs through rental spaces in shipyards: Engeniereers Marine Corporation (Panama) Inc. and Talleres Industriales SA

  They only have dry dock: Braswell in the Pacific and Atlantic ACP side. National Shipyards and ACP have also sincroelevadores.  The remaining firms have ramp stranded or outdoor structure that allows them to perform repair work on naval vessels.

Commercial Fishing

The shipyards engaged in repairing fishing boats have had to redirect their activities toward other types of vessels such as boats and yachts.  "Most of the work in the fishing takes place during the closed season," said Alejandro Gerbaud, manager of the National Shipyard SA

  In the shrimp it affected the high price of fuel used to move the boats and low prices for less product consumption in the U.S. and Europe.

Panama Debt Rating Raised to Positive by S&P

Panama’s credit-rating outlook was raised to positive by Standard & Poor’s, putting the Central American country on the cusp of an investment-grade rating, as tax increases and faster economic growth help keep the budget deficit in check.

Read the rest at Bloomberg;

Deep sea aquaculture startup in Panama prepares for harvest

I have posted on this company before because I find it fascinating that a sport fish can be farm grown in deep water. The fact that it is being accomplished here in Panama makes it even better, Interesting read from Cleantech.com.

Cobia fish may be the next big thing in high-end restaurants, replacing the now high-priced Chilean seabass, which is suffering from illegal and overfishing.

New York-based Open Blue Sea Farms specializes in developing environmentally safe and sustainable deep ocean aquaculture methods, known as free-range fish farming, the company’s Executive Vice President Clive Zickel told the Cleantech Group.

But Zickel said even though the company is initially focused on raising cobia—a white, firm fish often caught for sport—it is planning to grow other species as well.

Zickel said most fish farming tends to be done close to shore or in ponds, where the fish often swim in dirty water, eat what they excrete, and mercury and polychlorinated biphenyls can become a problem.

“Out in the deep water, our lab tests don’t show any of that,” Zickel said.

The fish at sea are raised in large geodesic domes, about the size of a six-story building, which are raised only for cleaning. The structures are more expensive to build and secure to the ocean floor than traditionally-used methods.

However, Zickel said the financial trade off is that by feeding the cobia a healthy fish meal diet and allowing them to be raised in an environment more like their natural habitat, a better product results that can become cost efficient in time.

Flat Tax back on track

I am very happy to see that the government still plans on implementing the flat tax system. This will be a big boon to business and a simplification of the existing and confusing tax system currently in place.

La Prensa

The government has given a new setback to the filing of tax reforms, whose most important change would be the replacement of Alternative Calculation of Income Tax (CAIR) by applying a flat tax (flat rate or only).

  The original plan was to introduce this reform last October, but then the long process of discussion and generated positions against last fiscal adjustment law adopted last September, the Ministry of Finance reported that the tax changes "integral" would postponed to 2010.

  However, the president, Ricardo Martinelli, said the Panamanian tax change will model during the special sessions of the National Assembly, scheduled for the recess of the legislature in November and December.

  Deputy Finance Minister, Dulcidio Guard, said the new initiative are reviewing the alternative calculation of income tax, lower tax rate on income of individuals and corporations across the flat tax and elimination of various taxes that have little revenue, but would not specify.

The official said he had met with the industry to explain some ways to achieve increased effective rate of tax.

  With just days to the end of November, the official said they are committed to the private sector to review the reform before it is submitted to the Assembly.  However, business associations are concerned about the dimension of the reforms against time for consultations.

 Ruben Castillo, president of the Panamanian Association of Business Executives (APED), said the tax issue is difficult, complicated and technical and can not "move quickly", referring to the discussion in the Assembly.

  Hopes that the reform is stable so it does not send a bad signal to investors that the revenue generated is invested not in form.

  Adolfo Linares, president of the Chamber of Commerce and Industry, suggested that points to a genuine fiscal policy to avoid falling into a purely tax collection reform parameters.

  For Gaspar García de Paredes, president of the National Business Council (Conep), fiscal policy must meet the mission of maintaining the vitality of the economy, instead of collecting more taxes and lose taxpayers.