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!

Is North America over populated?

One of the things I like about Panama is the relatively small population of a little over 3.3 million. This rather small population is one of the reasons you don't see such blatant poverty that can be seen throughout most of Central American and Caribbean countries. Costa Rica is the only other country in the area that has been blessed with a rather small population and a manageable growth rate of about 1.3%. That is not to say there is no poverty here. But, even with the reported 40% living below the poverty level you don't see much of it because most are living in the interior on plots of land that provide a subsistence living. Panama also has a large indigenous population who for the most part live in that 40% poverty level and they tend to live in reservations or groups away from populated areas. Of course a city like Panama City which has nearly half of the countries population also has a lot more concentrated poverty, especially on the Colon side of the corridor.

There has been an increase of immigration into Panama over the last few years mostly coming from Colombia and other Latin American countries. Most are seeking better work opportunities or political asylum. According to an article I posted earlier in the year only 26,000 people applied for residency in Panama between January 2007 and March 2009. Of that number there were only about 2500 applications from North America.That is a very small proportion of the population.

With these facts in perspective lets compare this to what is happening in the U.S.. Since 1980 the United States has seen a 33% increase in population and most of it due to both legal and illegal immigration. If you look at the facts of this immigration it becomes obvious that this uncontrolled immigration is one of the reasons they have so many fiscal and growing cultural problems. The U.S. is becoming a very fragmented society because most of these immigrants never become part of the melting pot like they used to during the wave of immigration after the two world wars. Now they don't learn the language and place ever increasing burdens on the health and education systems. I stumbled on a great website that clearly tells the story of American immigration and how it has/is affecting the country. I encourage you to spend some time looking over this data. Unfortunately even if they stopped the huge flow of immigration the country will still grow at unprecedented levels due to what has taken place in the last 30 years.

Tax havens buck European property slump

This is a short but, very important article that Panama should take advantage of. It tells us how countries who maintain their sovereignty and low tax codes fare much better than those that don't. We are seeing a similar trend here in Valle Escondido. Clients are looking for a safe Haven from what they see as a future of ever increasing taxes and a government that will be looking to those that have anything to pay for the mistakes of a whole generation. Right now the U.S. government is only looking at taxation, but many believe there will come a time in the not to distant future when anyone wanting to leave the U.S. will pay an exit fee for any money they want to take with them. While Europeans enjoy the fact that they are taxed only on monies generated in their home countries, U.S. citizens are taxed on their worldwide income, making moving their business offshore of little tax advantage. But living offshore does allow them an exemption of over $80,000 of income per year which is certainly better than what they experience in the U.S.. Small business owners may find other advantages if their business can be done from a foreign location.

Excerpts;

Most offshore tax jurisdictions within easy reach of Britain are bucking the European property market slump as wealthy Britons prepare to avoid UK tax rises, according to a survey released on Monday.

A report from Sovereign Group, the advisory firm, said property prices in Monaco and and Gibraltar were holding firm or increasing, while prices around them on the Côte d’Azur and the Costa del Sol have plunged up to 50 per cent.

“For many months now, 20 per cent of all new business at our London office has been from wealthy individuals looking to move offshore to escape what they expect to be increasingly harsh tax rises,” he said. “Very often, these clients are looking to take their businesses with them.”

Read the article here at Financial Times....

Panama yields to pressure concerning its lax banking laws

Although this is the headline from today's La Prensa, based on what is in the story and other sources I am not so sure they will have to give up too much. Sounds more to me like placating rather than real substance. As long as corporate share holder information is kept anonymous in Panama I don't have such a problem with tax treaties and other forms of so-called "transparency". We will have to watch these developments very closely.

From La Prensa; Panama said it would make certain adjustments to its banking system recommended by the Organization for the Cooperation and the Economic Development (OECD) and the G-20 Summit leaders, which have often criticized the country for being a fiscal paradise.

Though in a formal statement the country said it acknowledged that "times have changed" and that it will no longer be able to remain "isolated within the world," Vice Minister of Economy Frank de Lima said that the new administration intends to demonstrate that Panama is not a fiscal paradise and will demand recognition of the domestic tax system.

“We will ask for the Member States of the OECD that respect that concept, but that we are conscious that we must make changes in one way or another," explained the vice minister. One change, he said, would be to follow the route Switzerland has taken through the negotiation of treaties for a more transparen exchange of tax information.

De Lima contended that Panama can no longer risk being blacklisted or subjected to sanctions, as France and the United Kingdom have threatened.

Banks in the country have also consented to change their way of business. 

Federico Humbert, president of Banco General, said it is important that the banking community understand the economic impact of the OECD pressure and explained that it “would be irresponsible” not to take appropriate actions.

“We at Banco General have already adopted stricter measures to be able to eliminate the obsolete principle of the anonymous client that is protected in joint-stock companies," said Humbert. "We will be adapting other policies to better identify the client."

Here is another article from La Prensa that was in Spanish. It has a little more information.

Panama is ready to sign agreements to exchange tax information with the Organization for Economic Cooperation and Development (OECD) and thus avoid being subject to penalties or back to "blacklist" of countries that are considered "tax havens".

  The deputy economy minister, Frank De Lima, reported that there is still no official position, but "the path that could take" is the same as in Switzerland and other countries negotiating treaties for information exchange.

  "Panama is not a 'tax haven', businesses pay taxes under a concept of territoriality, but it is necessary to take decisions because we can not maintain the status quo," he said.

France, United Kingdom and other OECD member countries are advocating that sanctions be applied to so-called "tax havens".  If that happens, will affect about 80% of Panamanian exports and a significant percentage of the $ 7.9 billion of foreign deposits.

  For Federico Humbert, president of General Bank, are "unacceptable" statements "that provide an alternative simply does not do anything" and argued that the public is informed of the implications of these sanctions.

General Bank eliminated the opening of accounts at companies whose capital is issued in bearer shares, which is another issue that is in the sights of the OECD.

  Edward Morgan, one of the permanent Panamanian defenders of the tax system is not opposed to signing an agreement to avoid double taxation, but the exchange of tax information, which only takes colonies or countries that do not have a center as the financial Panama.  "It would be absurd and unworthy of signing a treaty of tax information would be one way in which the country did not win anything but lost," he said.

  Osvaldo Lau, tax consultant, believes that it is not transparent to protect those who have not complied with the laws of your country.  "We must have clear rules to give financial information on the country to ask, but where the legal route," he said.

SEE Panama is ready to change to the OECD

What's the real scoop on Honduras?

Honduras has been in the news a lot the last two weeks and I am sorry to have heard so many come out against the so called coup that removed Zelaya from office. I can understand people reluctance to support any kind of government overthrow by the military, especially with the history of Central American countries, but if you look a little deeper into this story you will find there is more to it than that and his removal from office was both justified and necessary. Here is an email from an expat who has lived in Honduras for a number of years and he shares his knowledge of the ouster and what lead up to it. This makes me feel more positive about Central American security when I see the people turn away from Chavez type dictatorships. For another look at the issues you may want to read the Honduras Trinuna "Will Obabam blackmail Honduras into installing a bullying would-be dictator?"
Hat Tip to Yari.

(What follows was written by Mitch, who has been living in Honduras since 2002. This is the best, blow-by-blow description I've seen to date of what happened in Honduras, and the events leading up to the removal of Zelaya as the president there.)

"I don’t profess to be an expert at Honduran politics or constitution, but I have been here a while and stay pretty involved with what’s going on in Honduras and especially Roatan. For those that don’t know me, I’m an American investor that has lived in Honduras full time since 2002. I’m very active on several commissions and have met with minister level executives=2 0of the Honduran government many times in the past few years. (more)

There have been a lot of comments, descriptions, and hypothesis over the past few days. I’ve spent a LOT of time reading Spanish and English reports, talking to a lot of people on the islands and on the mainland, and listening to the local politicians. I’d like to present my take on what’s happened. This is especially for Nick who’s been posting on the Roatan Tourist discussion group, but hopefully it will help clarify some points for others as well.

Mel Zelaya was elected 3 ½ years ago with an underwhelming 49% of the vote. He was seen as a fairly conservative member of the liberal party. The general feeling when he was elected was that he wasn’t the greatest pick, but his background as a wealthy logger and rancher coupled with his more liberal social policies would probably be OK.

Bid for lock construction comes within expectations

The bids for the major portion of the canal expansion project have come in and apparently one of them is under the threshold established by the ACP. Many have been skeptical, myself included, on whether the bids could come in at an appropriate amount because of the increases in material costs and the many unknowns of a project of this scale. I posted an article last year where the ACP was expecting the price to come in at around $2.7 billion. The winning bid actually came in at $3.118 billion which would appear to be $500 million over their estimate at that time. I suppose on a project of this scale a half a billion or so over is to be expected. There certainly was a large difference between the bids of the other two bidders in the process.

In any case, congratulations go out to the ACP and the winning consortium of Grupo Unidos por el Canal.

Excerpts from La Prensa: 

The audience reacted with applause when the bid from Grupo Unidos por el Canal was revealed. The consortium estimated its costs at $3.1 billion, $361 million under the threshold set by the Panama Canal Authority. The bid by Bechtel, Taisei, Mitsubishi Corporation came in at $4.1 billion, $705 million above the threshold set by the Authority, while the bid from Grupo C.A.N.A.L. was almost $5.1 billion.

Grupo Unidos por el Canal also received the best technical scores for its bid, leading Canal officials to comment that they felt comfortable with the way the process unfolded.

"The company that won is going to provide the best value to the Canal, both in terms of price and technical expertise," said Jorge Luis Quijano, head of the Canal expansion program. "We feel comfortable with the outcome today."

Campaign promises made in the inaugural address-Must read

I encourage everyone living in Panama to read the new presidents first address to the nation. If you are considering living or investing here you should read it as well. In this speech Ricardo Martinelli lays forth what he expects to accomplish and although it is a tall order, he believes it is possible to accomplish.  He realizes we are heading into very difficult economic times, but see's it as both a challenge and opportunity. I sincerely hope that he can accomplish his goals as he paints a very bright future for Panama.  These changes will not come easy, especially his idea of "Debureaucratize". But he certainly understands Panama's problems with government inefficiency being right at the top of the list!
Thanks to Eric Jackson for having the speech translated into English. You can read it at Eric's Panama News website.

Panama: Investors Bullish on Martinelli-LBC

Latin Business Chronicle has a special report on the election of Ricardo Martinelli and the jest of the report is that he is business friendly and considered to be more right leaning than most of the Latin American leadership.

Excerpts: “I’m very positive on Martinelli,” says ">Kathryn Rooney, senior emerging markets macroeconomic strategist at Bulltick Capital Markets. “He’s extremely market-friendly and will continue the positive trend of the economy.” She especially singles out his plans to lower taxes and improve relations with the United States"

Among Martinelli’s other top priorities is infrastructure projects – including a new subway in Panama City – and securing passage of the US-Panama free trade agreement. It was signed two years ago, but has been delayed by lawmakers.">Although President Barack Obama has stated that he favors the FTA, there are growing demands from Democratic lawmakers and some officials to delay approval until Panama passes several tax and labor reforms. officials have stated that they want Panama’s tax laws changed so it won’t continue being a tax evasion haven for Americans. “The tax issue – that could be worked out on the side [independent of the FTA],” McMillan says.

For even more indepth look at his policies, read Bob Baumans blog.

Businessweek-Why Panama is the new Florida

Although I don't agree at all with the title, I am very happy to see this positive article about people retiring to Panama. Great article!

Excerpts from Businessweek:

Panama's quality health care, low costs, and proximity to the states are attracting American professionals as a retirement haven

Prospective retirees: Panama wants you. The pitch? A plane ride just 21/2 hours from Miami enables the newly poor to swap a wretched retirement in the U.S. for one befitting a royal in the balmy Central American nation. Cash out! Emigrate! Feel rich! Panama—the new Florida.

Spin aside, Panama is increasingly popular among retirement-age types looking to hedge against—or skip out on—the recession. The Migration Policy Institute, a Washington-based think tank that studies the movement of people around the world, says the chief factors prodding professional-class Americans to flock to Panama include its First World health care available at Third World prices and the country's pensioner program, which offers some of the deepest retiree discounts in Latin America. Seniors get up to half off on nearly everything, including movies, motels, doctors' visits, plane tickets, professional services, and electric bills. Expats also pay no tax in Panama on foreign income. Nor are they required to pay property tax for the first 20 years.

Future looks bright for Panama-UK Telegraph

This upbeat article from the Telegraph should help spur more interest in Panama as the rest of the world sinks further into economic morass. Pretty well done.

Excerpts:

Panama is booming, in fact it has been booming for some time now. Those who missed the boat in Miami and found Costa Rica inadequate and too costly, set their sights on this sliver of a country that since the strongman Manuel Noriega was deposed in 1989 has been a model of stability.

Many expat retired people have also been enticed into investing in property here because of Panama's easy access to both oceans, abundance of flora and fauna, by a favourable climate – which conveniently lies south of the hurricane belt – and most importantly the infrastructure.

Number of registered companies increases

Surprisingly the number of companies registered in Panama actually increased according to an article from La Prensa last week. The amount of money invested also increased significantly.

Excerpts From LA Prensa: There were 761 more companies registered at the end of June 2009 than at the end of June 2008, according to statistics from the Ministry of Trade and Industry.

Between June 25, 2007 and June 25, 2008, there were 19,868 firms registered which reported a combined $687 million in investment. Between June 25, 2008 and June 25, 2009, that number grew to 20,629 businesses with investments totaling $717 million.

This is "extraordinary," said Delfín Aparicio, executive director of the Panamanian Microfinance Network, "especially in a year of crisis, when other companies in most countries are closing, merging or making strategic alliances to be sustainable."

The majority of the companies, 67.7 percent, are located in Panama City. There are 10.6 percent registered in Chiriquí, while the remaining 21.6 percent are located in the other provinces. Most of the companies are in the service and retail sectors.

Panama recently allowed businesses to register on the Internet through the site www.panamaemprende.gob.pa. According to government officials, this has cut red tape and costs, making it easier to start a company.

Officials with the National Union of Small and Medium Enterprises said that the new registration method is easier, and it has been one of the primary reasons that Panama's number of businesses has grown.

Canal expansion bids expected this week

Tomorrow is the big day that the bids will be opened for the first time. Although the ACP expects the bids to come in within budgetary allowances, many are not so sure. In any case, the suspense will be lifted and the bids will be known win a few days. La Prensa carries a good article about the process and another extended article from Reuters deals with bidders expectations.

Excerpts from La Prensa:Wednesday, the committee's findings will be released, with the score assigned to each proposal making up 45 percent of the score each bidder will receive. The remainder of the score will come from the price that each company has assigned to the project. That part of the bids have been held under tight security, and will be revealed in public when the envelopes containing the bid prices are opened.

Excerpts from Reuters:

MILAN/PANAMA CITY, July 7 (Reuters) - A team led by U.S. group Bechtel is financially best placed to win the race for an estimated $3.3 billion contract to expand the Panama Canal, analysts said.

The Panama Canal Authority (ACP) overseeing the bidding will open price bids on Wednesday but may take several weeks before announcing a winner. This $3.3 billion contract is the largest chunk of a $5.25 billion project to expand the canal.

OECD blacklist of Panama threatens corporate share disclosure

The banking privacy issue continues to be a burr under the saddle of the G8 countries who are concerned that billions in taxes are being hidden away in Panama's numerous banks. It looks to me like Panama is left with little wiggle room as numerous sanctions are being threatened if Panama does not comply completely with the OECD requirements. This article from La Prensa says that the corporations and maritime industry are under threat by these requirements which would seem to indicate that pressures are mounting to force disclosure or corporate share ownership. This is a sad development and could spell disaster for a number of income sources the country currently enjoys at a time when it is all most needed.

Excerpts from La Prensa: The governments of the United Kingdom and France are determined to ensure that sanctions are applied to countries they consider "tax havens," including Panama.

Those countries pressed for the sanctions at the "G8" meetings yesterday. They have also been threatening to blacklist Panama and other countries through the Organization for Economic Cooperation and Development, a Paris-based group that, in part, tracks regulations that are enacted by offshore financial jurisdictions.

Another visit to the old historic area of Casco Viejo

I love restored cars, boats and buildings. Something about the things made with craftsmanship from the past intrigue me. It is not just the quality of things made more by hand than machine, but also the history of the time when the item was made. Last week when I visited the city I had the opportunity to once again visit Casco Viejo, the old city near the new City of Panama. Casco Antiguo (also referred to as Casco Viejo or San Felipe) is the old quarter of Panama City, founded in 1673 after the original Pacific settlement (Panama Viejo) was sacked by the pirate Henry Morgan. It remained the center of Panamanian life for nearly 300 years, until the 1930s, when, like many old quarters in Latin America, Casco Antiguo declined as Panama's upper crust moved to the suburbs.

I love the architecture and the narrow streets that could each tell some grand stories of the past. Each new visit to the area shows more improvements. More buildings being rehabilitated with new restaurants, bars and grand plans for more. There are two new large hotel projects underway that will add over 150 new rooms to the area. There are several interesting museums and they have done a good job of putting together written materials to help you navigate your way around to the various historic buildings.

On this trip I had the unique opportunity to tour the Canal house, a small 3 room boutique hotel, right in the heart of the old historic district. This is the same house used by 007 for over a month while they shot the latest movie. The furnishings are beautiful and take you back to the time of the building of the canal when the old city still played a vibrant part in the economic activity of Panama. If you like history and don't want to stay in a generic hotel room where they all look and feel the same, I encourage you to try staying in this wonderful gem where the staff out number the rooms and your every need is first met with a smile. And spend a day or two taking in the sights of this beautiful and up and coming part of Panama.

Panama to develop 31 hydro projects of 1,047 MW by 2013

When coupled with new wind farms, this will nearly double Panama's current energy generation and make it possible to eliminate existing oil fired energy generators. Panama should be a net energy exporter within the next few years.

From Hydro review

Excerpts: Panama's utility regulator predicts the nation will add 31 hydroelectric projects totaling 1,047 MW through 2013.

Autoridad Nacional de los Servicios Publicos (Asep) said 15 of the projects are under construction “with a healthy rate of progress,” while the other 16 are in final design. The agency said the projects represent investment of US$2 billion, giving a strong boost to the Panama economy.

“This gives peace of mind that the market is growing because they can meet demand in coming years,” Asep said.

Panama’s current installed capacity is 1,663 MW, compared to peak demand of 1,120 MW, Asep said. Demand is expected to total 1,373 MW by 2013.

read the rest of the story here..

Growth rate predictions increasingly somber

Governments and economist are typically over optimistic in times of financial trouble and my bet is Panama growth could go negative before the end of the year. After all, it had been revised down from over 7.5% to now 2.8%. Not much further to go to be in negative territory.

The Indesa consulting firm revised downward its forecast for the country's economic growth yesterday, bumping it from 3.2 percent to 2.8 percent.

Indesa economist Guillermo Chapman indicated that the .04 slide was not entirely a surprise to the firm and had much to do with the depressed economic state being felt the world over.

"The global crisis is having a severe impact on the growth of Panama, which we and other analysts had anticipated. The main mechanism of transmission has been the sharp fall in exports," he said.

Similar readjustments were made by other consulting groups as a consequence of the global recession. The IMF, for example, lopped off several points to its original 7.8 percent prediction for Panamanian growth this year, lowering it to about 3 percent.

Panama's first wind farm a big one

La Prensa
Fersa Energies Renovables, SA, a Spanish company operating in three continents, won permission to build the first wind farm in Panama.

The company, based in Barcelona, won approval to develop the wind farm of 225 megawatts Toabre and connecting to the national grid of Panama, said President José María Roger, in a telephone interview yesterday.

Fersa is strengthening its presence abroad, where they benefit from government incentives to develop renewable energy as well as countries seek to reduce dependence on fossil fuels and control the emission of greenhouse gases.

In contrast, Spain is seeking to limit the wind under a plan for 2010 to 2020 renewables, according to the daily El Economista.

"Project funding Toabre be ready by early October and construction should begin later this year," said Roger.

FERS, which will implement the project through its subsidiary Toabre Panamanian Enrilews SA, which owns 92%, has provisional approval for another wind farm in Panama, a development of 246 megawatts.

Flat tax moves closer to reality in Panama

In a Spanish article in La Prensa economy section the Ministry of Economy and Finance states it is preparing to present to the assembly tax reforms including a flat tax proposal.

Here are some excerpts in English: The working agenda of the new Minister of Economy and Finance (MEF), Alberto Vallarino, for the first 100 days of this government, has six priorities. And among them is the first implementation phase of tax reform: send the Assembly a draft to amend "certain very specific taxes, such as the casinos," and a "moratorium law to collect overdue taxes."

 The application of tax model a flat tax, which involved in part a reduction in the rate of income tax (ISR) to companies and the elimination of exemptions to the dealer and the end of the alternative calculation of the ISR ( CAIR) will come later, after a thorough diagnosis.

  "We are going to send the Assembly a budget for the remainder of 2009, including some of the campaign promises, including increased pay for police, $ 100 per month for adults older than 70 years without pension coverage and Network of Opportunities, and a subsidy program for buyers of social housing, "Vallarino said.

Foreigners accused of forcing land sales

I was amazed at this story in La Prensa where the writer seems to be painting a picture of and idealized paradise and then throws in wild accusations at the end of the story. I have seen such accusations before and I doubt seriously the validity of them. I can't imagine foreigners resorting to violence in order to acquire land for development, especially in an area so remote as Bahia Honda. The story was in Spanish from La Prensa and I have translated some excerpts. Anyone with more knowledge about the allegations please comment.

Excerpts from La Prensa: Bahia Honda is one of the villages closest to the Coiba National Park, but residents say they no longer enjoy the tranquility offered the place years ago. The natural wealth has attracted foreigners to buy land and, according to neighbors, in some cases forcing the occupants to sell.

The issue, say, has reached the point that some ranches have been burned because the owners refuse to sell.

For these cases, neighbors have brought complaints to the Mayor's Soná and the Public Ministry of Veraguas, but not yet opened an inquiry.

Chiriqui province sees 60% drop in investments

Blame it on the world economy, but you can also blame it on the fact that 2008 was a banner year for our town and province. This article from La Prensa highlights some of the investments and tax revenues the province has seen over the last few years. Having lived here for 10 years I can say that David and the surrounding area has seen some spectacular investments in everything from shopping centers to office buildings. Maybe it was time for a breather, but all the construction has brought employment and prosperity that everyone would like to see continue. The article is in Spanish but I am posting some excerpts in English.

Excerpts: Sources at the Ministry of Commerce and Industry reported that in the first six months of 2009, a thousand 211 active companies made an investment of 11 million 28 thousand dollars, while in the same period of 2.008 million 162 companies invested 27 million 317 thousand U.S. dollars, reflecting a fall in investment of around 60%.

The new governor of the province, Enrique Fernandez, warned that the effects of the global economic crisis have affected to some extent on investment in Chiriquí. However, expressed confidence that the new government is capable of preventing the crisis from having big consequences.

While new investments in the first half is only 40% during the same period there was a growth in tax collection of the City of David.

  The treasurer of the Municipality of David Ricardo Medical, said that for the fourth consecutive year of the first half revenues exceeded those obtained in the same period last year.

 By June 12 this year, they have raised 2 million 206 thousand 227 U.S. dollars (See chart comparing tax collection).

Martinelli takes the reigns

Amidst much fanfare Panama's newly elected president takes the helm of leadership. I watched the televised inaugural address with my wife and we were impressed by both his candid words and style. Most people I have spoken to believe that the new president is honest and capable of handling the countries affairs. I too have high hopes for him as he begins to tackle the many problems facing this small nation. Here is La Prensa's take on his first address.

Excerpts from La Prensa: Speaking to a crowd of dignitaries, world political leaders and special guests, Ricardo Martinelli promised to bring the same principles from his business career to the halls of government after he was sworn in as the country's president yesterday.

Martinelli, who brought together several opposition parties under the banner, "Alliance for Change," said that he will reduce red tape and offer a leaner, more efficient government.

He said that he will end the tradition of elected leaders "arriving clean and leaving millionaires," which reiterated one of his most popular campaign slogans, and said that the needs of the people will come first in his administration. One of his promises was to provide a pay increase for police officers, viewed as a way to reduce crime, and to give a pension to indigent senior citizens of $100 per month.

Read the rest of the story here...