Panama Investor Blog

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Just when you think no one is listening something like this comes along to boost my day. Now to be honest, I have not heard of these guys before (Global Edge UK) but they are all right in my book.

Excerpt;
Panama Investor Blog. This site covers all aspects of investment in Panama, but has a dedicated real estate strand with news and analysis on property and residential tourism. It is frequently updated and features original content along with stories from reputable international sources.

Read about the whole list here...

Debt not likely to go down-No big deal

HMMMMM

Despite the government's excellent financial performance during 2007, in which it recorded a surplus of $683 million, it has no plans to use the money to reduce the country's deficit, said Héctor Alexander, the ministro de Economía y Finanzas.

Some of the money will be used to pay interest the government owes on its outstanding debt, but none will be used to pay down the the principal.

"The debt and interest payments will continue to lose their relative importance," the minister said.

Although the public debt has increased over the past three years, its ratio to the country's gross domestic product (GDP) has decreased substantially. In 2004, the debt was 70 percent of the GDP, while last year it was 56 percent.

Read the rest of the story....

Building materials do not meet standards

This article points out some problems with materials used for construction in Panama. In the interior it is very common to see a block making operation in someones back yard. All it takes is a simple press, some sand, cement and water and your in business. When homes were only one level and may 20 feet square, this was adequate, but with the demand of foreigners for larger and better quality homes, material made in someones back yard may not be sufficient. Better check you supplier.

Building materials do  not meet standards

The concrete blocks sold by the majority of businesses in Panama, and which government authorities have recently inspected, do not meet industry standards.

Officials from the Autoridad de Protección al Consumidor y Defensa de la Competencia measured the size of the blocks and found that only 15 of 129 of the businesses that they inspected offer a product that complies with industry regulations.

The Autoridad did not disclose the names of the companies selling those blocks that call into question the safety of the structures they were used in. It did disclose the names of the others, however, which are Cochez, Novey, Panablock, La Fortuna and Fábrica de Bloques Destria, among others.

Most of the deficiencies discovered during inspections were in the height of the blocks. The defects may be attributable to problems with the machinery used to make them. Authorities said that the factories lack adequate supervision.

Foreigners will need new ID card

As we have still not received a copy of the law translated into English, we are depending on the local press and others who have read the law to tell us their opinion of what lies in it that could affect us.

I read several comments from readers about the requirement that all foreigners must notify the immigration office of their address while living in the country. As you may know, right now there is no way for any government official to know where a foreign resident lives and quite frankly, that is the way I like it. One of the attractions of Panama is that big brother is not looking over your shoulder wanting to know where you are and what you are doing. It is not that foreigners are doing anything necessarily illegal, but from my point of view, it is an invasion of privacy and is unnecessary.

So why would the government NEED to know where you live? Well, if you want to know who owns what in a country where everyone uses a Panamanian corporation for their property, this could be a way to make that determination, at least with foreigners. The question may arise, do you have a lease on that property in which you reside?  Have your corporation make up a lease and the government will tax the corporation at 30% of net income. If you don't lease then you must own it right? Now this is all conjecture, but based on what I have seen over the last few years and the governments clear mission to get more tax revenue, it seems plausible that all of this is a grand design to increase tax revenues on those they believe can afford it.

I have seen comments from readers who believe that some taxes are needed in order to pay for all of the infrastructure that is required. I would agree with this only where infrastructure is required and being paid for by the state. In the case of most projects in the interior, they build all of our own infrastructure and require nothing from the state. I believe a project should build and maintain the road to the entrance of his project to a main artery and if he uses a municipal water supply should have to pay whatever is required to handle the increased burden. Certainly in the city the developers should pay for hook up to water and sewer and other fees for adding to the burden of traffic on the streets.

What I don't believe in is property taxes of any kind. Property is the basis for all freedom and if you are taxed on it and don't pay the tax you can lose it which is really nothing more than renting it. I believe in taxing consumption and let each person make the decision on what they wish to consume. Panama is beginning to lay the foundations for collecting property taxes just as in first world countries, but without the checks and balances even first world countries have in place to protect from theft and corruption. IMO

Here is a story from LA Prensa that tells us about  a new ID card that foreigners will be issued when living in Panama. I am amazed at the logic that it will help them identify between Panamanians and foreigners more easily. As if our appearance and and language aren't enough.

Immigration officials are depending on new technology to help them implement changes in the country's law regarding foreigners.

Tayra Barsallo, subdirectora of Migración, said that the law calls for the use of "biometric technology," which identifies people based on physical features such as fingerprints.

The changes to the country's immigration laws go into effect on Aug. 26. One of the primary changes enables individual officers to grant visas varying in length between 20 and 90 days. This will apply to visitors from country's that do not have visa agreements in place with Panama, such as Colombia, Venezuela, Trinidad and Tobago, Peru and Ecuador.

More border checkpoints will be opened in the country, and more stringent rules will be applied for checking the validity of travel documents, Barsallo said.

The new law also calls for eliminating the requirement of a cedula for foreigners residing in the country. Instead, foreign residents will have a term of one year to obtain a new identification document to be issued by the Tribunal Electoral (TE).

It is not yet known whether this ID card will cost. "The cedula lends itself to confusion because it is difficult to differentiate between those given to Panamanians and those given to foreigners," explained Barsallo.

Panama Canal Increases Fees for Pleasure boats

This is an interesting article that gives us the costs of bringing a private vessel through the canal. Seems very cheap when you consider a trip around the tip of South America!

By: Capt. Pat Rains | Thursday, February 28, 2008 12:00:00 AM

Last updated: Thursday, February 28, 2008 2:52:00 PM

Higher fees blamed on rising cost of fuel, canal improvements. PANAMA -- Blame it on inflation. The Authority of the Canal of Panama (ACP) announced that the rates for line-handling services are increasing 7 percent, effective March 1.   Photo by: Capt. Pat Rains New Fees for Cruisers -- Starting in March, pleasureboats preparing to transit the Panama Canal (such as the ones pictured, at Panama’s Balboa Yacht Club moorings) must pay 7 percent more for line-handling services included in the transit fee.   Every yacht transiting the canal requires the use of ACP line handlers. They’re the guys in hard hats who toss down the monkey-fists, secure the eye-ends of your 125-foot canal lines over bollards atop the lock walls, and carry the your lines into the next chambers. The present “transit fee” of $600 for a yacht smaller than 50 feet (admeasuring length overall) will increase to about $642, according to the ACP’s Marine Notice to Shipping. Yachts 50- to 79-foot yachts will pay about $910 for the transit fee, up from $850. Yachts to up to 99 feet in length will pay $1,177; and yachts measuring 100 to 124 feet will pay $1,712 in transit fees

Read the rest of the story at Thelog.com
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Beating the crowds to Panama-MSNBC

Articles such as this are great for Panama and will bring many more tousis to its shores.

By Tim Leffel

Travel columnist

updated 1:52 p.m. ET, Thurs., Feb. 28, 2008

Panama is one of the key crossroads in the world, the land bridge between North America and South America and the waterway between the Atlantic and the Pacific, yet it seems to be perpetually a decade or two behind always-trendy Costa Rica in drawing crowds of tourists. This is true even though Panama has all the elements to qualify as a Central American hotspot: teeming wildlife, sandy beaches, scuba diving, world-class fishing, widespread English proficiency, reliable transportation and a cosmopolitan capital city. The country even uses the U.S. dollar as its currency, so American visitors don’t have to worry when the dollar takes a dive abroad.

So what’s the hang-up?

Read the rest of the story....

Missing WWII Plane Found in Costa Rica

I found this article interesting in the fact that a plane can remain hidden in the jungles for so many years. After spending two days searching and then finding the plane and a survivor over Christmas I find it even to be more a miracle after reading this.

SAN JOSE, Costa Rica (AP) — Farmers in the mountains of Costa Rica found a Chilean air force plane that disappeared during World War II while flying from Texas to Chile.

Police were led to the crash site after an anonymous caller reported seeing a local resident carrying plane parts in the town of San Isidro de El Guarco, located in the mountains outside of the Costa Rican capital of San Jose.

Officials confirmed the plane was the Vultee BT-13 Valiant that disappeared in 1943 on a flight from San Antonio, Texas, said Francisco Lara, a spokesman for the Chilean Embassy in Costa Rica.

"You can plainly see the coat of arms and the colors," he said. "We are sure it is the same plane."

The Chilean air force had just purchased the plane in Texas and was flying it home.

Lara said pilot Werner Martinez and Sgt. Tomas Ayala were on ill-fated flight 65 years ago, but that officials found no sign of human remains.

A man found selling the plane parts said he found the crash site more than 30 years ago and that it was no secret — at least to locals.

"A lot of people around here knew about the plane, and I thought authorities also knew," Victor Navarro told the Costa Rican newspaper La Nacion.

Large Spanish real estate company comes to Panama

Maybe a little late bt we can sure use all the help we can get. La Prensa

Agency to set up offices

Fincas Corral Servicing, one of the most important real estate agencies in Spain and Europe, will make Panama its regional headquarters for Central America.

Fincas Corral already has a presence in Mexico and Ecuador and is preparing to move into Colombia.

"We can say that Panama is very possibly the country that offers the greatest economic and political stability as well as legal reliability at the time ofmaking real estate and investment transactions," said Jordi Garrido, director of Fincas Corral's expansion efforts.

The company is looking for a place to establish its central offices. "Setting up the offices will be fast, and we believe that in two months we can be operating normally," he added. The offices will be located in the city of Panama, the metropolitan areas, and in tourist areas. The company hopes to generate employment for 150 people in Panama.

KLM to offer direct flights to Panama

Beginning March 30, KLM will operate three weekly direct flights between Amsterdam and Panama. The new flight will offer various connection options at both destinations.

Axel Metselaar, the new general manager of Air France-KLM for Panama, has been working hard the last few days. Metselaar is in charge of making all the commercial and operational arrangements for the first direct KLM flight between the Dutch city and the Isthmus. Air France-KLM has a had a presence in Panama for nearly 50 years, but stopped flying directly to the country in March of 1998, afterward naming Continental Airlines and Pan Alliance ro represent it here. Now that the Panamanian economy has taken off, the airline has decided to regain control and renew its operations.

HOW IMPORTANT IS THE PANAMANIAN MARKET TO THE AIRLINE?

Read the rest of the story here....

Transparency in Canal contracts already a question

This from La Prensa today.

A committee of seven was appointed to oversee contracts awarded for the Canal expansion.

Political leaders have called for the group to report on the work they have been doing.

Carlos Lemos/la prensa

Progress: The Canal expansion project is estimated to cost $5.25 billion and is expected to be complete by 2014.990681

One year after an ad hoc committee was charged with overseeing contracts for the Canal expansion project, some politicians are complaining about the lack of information it has provided to the public concerning its activities. Although the committee is not required by law to report publicly on its work, Asamblea Nacional deputy Jose Blandon believes it should do so anyway "because they are not there on their own behalf but on behalf of all Panamanians. "

"The committee has not shared information with the Assembly on the results of the work they are doing. There does not appear to be strict control over what is happening with the expansion," Blandon said.Frank Lima, who has been designated by the Cambio Democrático party to follow the expansion project without being a member of the committee, says he has thus for not seen a single benefit emerge from the womb of the committee, which makes it a "decorative" body.

Read the rest of the articla at La Prensa