Panama Investor Blog

Geisha Coffee breaks records

Boquete continues to lead the world in the best and most expensive coffee. This last week a new record was set for the most expensive coffee.

La Prensa

Geisha Coffee 'Esmeralda Special' surpassed his own record and established global brand to the pound quoted at 170.20 dollars. Geisha Coffee 'Esmeralda Special' SURPASS own historical record and to the Established global brand pound quoted at 170.20 dollars.

Aet Elisa Tejera C. Aet Elisa Tejera C.
Flor Bocharel Flor Bocharel
[email protected] [email protected]

The "Esmeralda Special" Geisha variety re-heat the coffee market yesterday by breaking the world record in sales to 170.20 quoted in dollars per pound, the online auction "Best of Panama 2010." The "Esmeralda Special" Variety Geisha re-heat the coffee market yesterday by breaking the world record in sales to 170.20 quoted in dollars per pound, the online auction "Best of Panama 2010."

Japanese Coffee House Sazae purchased eight bags of 50 pounds of coffee worth $ 80 68 000. Japanese Coffee House Sazae Purchased eight bags of 50 pounds of coffee worth $ 80 68 000.

Panamanian Geisha Coffee has six consecutive years of winning first place of the auction is harvested and processed at Finca La Esmeralda, located in Boquete, Chiriqui. Panamanian Geisha Coffee has six Consecutive years of winning first place of the auction is harvested and processed at Finca La Esmeralda, Located in Boquete, Chiriqui.

"Achieving a world record price at us very proud, because this victory brings to Panama on the map of the best coffees in the world," said Rachel Peterson, owner of Hacienda La Esmeralda. "Achieving a world record price at us very proud, Because this victory Brings to Panama on the map of the best coffees in the world," said Rachel Peterson, owner of Hacienda La Esmeralda.

"With this we tell the world that we have a coffee with great attributes," said the producer. "With this we tell the world That We Have a coffee with great attributes," said the producer.

In the online auction which lasted two hours 20 lots traded of the best varieties of the country and involving purchasers from Japan, Korea, Sweden and the United States. In the online auction Which Lasted two hours 20 of the best lots Traded VARIETIES OF INVOLVING Purchasers the country and from Japan, Korea, Sweden and the United States.

The total turnover for the 20 lots was $ 190 148 000 and the average auction price was 12 dollars and 45/100. The total turnover for the 20 lots Was $ 190,148,000 and the average auction price Was 12 dollars and 45/100.

Richard Koyna, president of the Specialty Coffee Association of Panama, said the aim of the auction is to sell small lots, but at high prices. Richard Koyna, president of the Specialty Coffee Association of Panama, said the AIM of the auction is to sell small lots, But at high prices.

S&P upgrades Panama to BBB-

As expected, Standard and Poor's rating agency upgraded Panama credit rating in line with Moody which did so last month. This gives Panama better availability to financing and at better rates. And borrow she will!

LA Prensa

The holding now is more realistic and Analysts Given Panama as a Fact That will soon showcase the world to the investment grade category by the three most Recognized rating agencies.

Standard & Poor's (S & P), which yesterday gave Panama the rating of BBB-, took into account to raise the note Panamanian continued economic growth of the economy, which in combination with a moderate fiscal deficit should reduce the debt burden Government and maintain its financial profile in line with that of other sovereigns who are in the "BBB". Standard & Poor's (S & P), Which yesterday gave Panama the rating of BBB-, took Into account to raise the note Panamanian Continued Economic Growth of the economy, Which in combination with a moderate fiscal deficit should reduce the Debt burden Government and Maintain Financial STI profile in line with That of Other sovereigns Who are in the "BBB".

Progress in the construction of the third set of locks, an ambitious public investment plan for infrastructure, the benefits it brings to the country as a regional hub for trade, finance and transport, the possibility of increased economic resilience and diversification, according to the rating. Progress in the construction of the third September of locks, an Ambitious Public Investment Plan for Infrastructure, the Benefits it Brings to the country as a regional hub for trade, finance and transport, The Possibility of resilience and Economic Diversification increaser, According To the rating .

It is expected that the deficit, which averaged less than 2% of gross domestic product (GDP) in the previous administration, closing 1.4% for 2010 and hover around 1.2% between 2011 and 2015. It is Expected That the deficit, Which averages less Than 2% of gross domestic product (GDP) in the previous administration, closing 1.4% for 2010 and hover around 1.2% Between 2011 and 2015.

In turn, public debt, which improved to 26.7% of GDP in 2009 from 40% in 2004, until it gradually goes down by 20% in five years, down 36%, median of the countries qualified "BBB". In turn, public Debt, Which Improved to 26.7% of GDP in 2009 from 40% in 2004, Until Gradually it goes down by 20% in five years, down 36%, median of the country clubs qualified "BBB."

To the financier Álvaro Naranjo, the fact that S & P will have risen more in Panama is a positive sign in the midst of an environment in which these agencies are reviewing sovereign and corporate ratings down. Alvaro Naranjo to the financier, the S & P Fact That Will Have Risen more in Panama is a positive sign in the Midst of an environment in Which These agencies are Reviewing Sovereign and corporate ratings down.

For its part, the financial advisor Joaquin De La Guardia said the numbers of Panama have significantly improved in recent years as a result of economic growth, which has diminished the relative weight of debt. For ITS part, the financial advisor Joaquin De La Guardia said the numbers of Panama Have Significantly Improved in Recent years as a result of Economic Growth, Which has Diminished the relative weight of Debt.

One of the main benefits that will accrue to the country as investment grade is the reduction in borrowing costs for both the State and for businesses. One of the main Benefits That Will accrued to the country as investment grade is the Reduction in borrowing costs for Both the State and for Business. A better credit rating, the lower the cost of funding. A Better credit rating, the lower the cost of Funding. This note is a parameter measuring a debtor's financial ability and willingness to pay its liabilities. This note is a parameter Measuring a debtor's Financial Ability Willingness to pay STIs and Liabilities.

Reuters say's Panama harbors ambitions beyond its canal

Overall a very positive article about Panama's economic future. They do express some debt concerns but based on a diverse economy they don't think it will be a problem.

Excerpts:

"What's striking is that this is such a broad-based economy," said Boris Segura, an economist with the Royal Bank of Scotland. "Yes, they have the canal but there is also tourism, construction and a growing financial services sector."

With a population of just 3.4 million, Panama will never be a China or a Japan but local leaders say it can aspire to become like Singapore, an affluent and diverse crossroads for international finance and trade.

"Nobody is going to come to Panama to sell to the domestic market. We tell investors 'Come to Panama and sell to the world'", Trade Minister Roberto Henriquez told Reuters. He sees the small isthmus nation's future as a boutique exporter of high-margin goods and services.

"The numbers tell us that we can continue stepping on the pedal without going into profound financial problems in the country," said Henriquez.

But with a capital skyline that resembles Dubai of yesteryear and politicians promising to pour even more concrete in a building spree, some fret that spending or growth could spin out of control.

Panama will get a prolonged boost from the canal upgrade and is reaping a modest windfall too as wealthy economic refugees arrive from other Latin American countries like Venezuela, Ecuador and Bolivia, where left-wing governments have spooked business leaders and investors.

Good ol' boys may have solution to oil pollution

Maybe we don't need scientist, engineers, government officials etc. to solve our environmental problems. We need only to look to the boys on the farms to come up with the answers. These good ol' boys appear to have a pretty good idea on solving the problem of mopping up oil in the gulf. I bet they would also be able to solve many of our social problems as well just using common sense. Lets hope they get it done before the oil spreads south to our sandy shores!

New phallic shaped financial tower has Panamanians feeling screwed

One has to wonder where the politicians think money comes from. After all, they produce nothing but expenses and bureaucracy. So in today's Panama America the Minister of Finance tells us that the respected architectural firm Skidmore Owings & Merril was paid $300,000 to design this new skyscraper to house government offices. The government does not seem to be concerned about the cost of building this structure as much as arguing that there is little  similarity in design of a building in Spain. 

It is planned to sit on the land where the old  American Embassy used to be. The location was leased by the U.S. government for 99 years and has a lot of time left on that lease, but have apparently has been given it back to the Panamanian government so they can get further into debt.

A shiny new building will not improve government services and is just putting perfume on a pig. They would be better off spending these $200 plus millions on education or waiting another year and buying up some high rise apartment towers cheap and converting them to offices IMO.

Reading comment on the Panama America website gives us some idea of what Panamanians feel about this latest plan for their money. There are over 80 and few are happy about it.  I have translated some of them below.

"We can not have this kind of work clearly fascist, or built by a government while other similar towers like Barcelona is the product of private initiative, is intended to make "a finger" by a minister that Vallarino or know anything about these matters, nor within its competence.

andy  18-05-10  [22:20] 05/10/1918  andy [22:20]

"200 million dollars to a few games, this government is going to go into debt to go with their madness and the party goes, the people pay and cries"

"It is infuriating to listen to politicians that this is a project of the first world, when in this country there are a number of problems of a Third World country or worse, spend that money on health, education, security and roads, then think of a better proposal, as the city government but with all comforts."

"It is obvious that this horrendous project is not financially or economically viable. It is thought that Alberto Vallarino, who still does not realize that people do not want a candidate for nothing, seeks to make a public work, with our taxes, of course, as if he were a government alone. Alberto also do not want to mix with the rabble of officials and institutions that would move to the city government in Curundu, a very chusmero for him, so he would stay away from the mob with their exclusive offices on Avenida Balboa, up high, away from the populace.
Rabble, rabble, poof courier 10.05.1918 [16:14] "

"This design won a vulgar solamentre not copy, it's a mess from every point of view. And it looks like a dildo, like those used in the mef when taxes increase.
Courier Kenya 05/18/1910 [15:49] "

Comforter, preservation or positorio Condom use, whatever. In the end it always be something that is entered from behind. So we're going to do with this mam otreto. 250 million for this and tumbling schools, there to pay teachers and health sisemta better not talk. We like the Americans who make cuts to health and education, but give 20 million to NASA to send a rocket to see if there was ever dilute the planet Mars. Learn to prioritize. Invest in education first, then all these vanalidades will come along.
The courier sensible 10.05.1918 [12:28]

Trump Ocean Club injects capital to cover cost overruns

Last month there were concerns about the Trump Ocean Club after an announcement that the mega project needed just under $27 million to cover cost overruns. It seems those fears were unfounded as the developer has come up with that much plus an additional $6.5 million in credit line to cover any additional unexpected costs.

Newland International Properties, Corp.
 
CONSENT SOLICITATION relating to
certain Amendments under the Indenture
Governing its 9.50% Senior Secured Notes due 2014
 
May 14, 2010 - Newland International Properties, Corp. (the “Company”) announced today the successful completion of its solicitation of consents (the “Consent Solicitation”), announced May 6, 2010, relating to its 9.50% Senior Secured Notes due 2014 (CUSIP Nos.: 651501 AA6, P7182P AA0; ISIN Nos.: US51501AA69, USP7182PAA05) (the “Notes”), issued under the indenture, dated as of November 7, 2007 (the “Indenture”), among the Company, as issuer, and HSBC Bank USA, N.A., as trustee (the “Trustee”).  The consent period expired on
schedule at 12:00 p.m. New York City time today (the “Consent Deadline”). ;Consents relating to U.S.$192,618,000 of the outstanding U.S.$220,000,000 aggregate principal amount of the Notes (87.55%) were delivered at or prior to the Consent Deadline.  Accordingly, Noteholders have delivered the required majority of consents to adopt the amendments to the Indenture, and the Company has executed a supplemental indenture (the “Supplemental Indenture”) with the Trustee containing the amendments. As a result, the proposed amendments are effective. Subject to the terms and conditions of the Consent Solicitation, the Company will pay to each consenting Noteholder U.S.$5.00 for each U.S.$1,000.00 in principal amount of Notes as to which a validly delivered and not validly revoked consent has been submitted prior to the Consent Deadline as promptly as practicable hereafter. ; The Company also has announced today that it has received U.S.$26.9 million in funding from the Construction Completion Support Parties, which funds have been transferred to the Construction Escrow Account pursuant to the Indenture.;J.P. Morgan Securities Inc. acted as Solicitation Agent with respect to the Consent Solicitation (the “Solicitation Agent”) and Global Bondholder Services Corporation acted as Information Agent and Tabulation Agent with respect to the Consent Solicitation (the “Tabulation Agent”).  ;

This press release does not constitute, or form part of, any solicitation or any offer

or invitation to sell any securities in any jurisdiction.

file:///Users/samtaliaferro/Desktop/NewlandConsentSolicitation.pdf

Two new Megaports announced for the Pacific side of the canal

The rate of announcements for more major infrastructure projects in Panama is astounding as this article points on from La Estralla. It reminds me of the pace of announcements of high rise condo's in 2007-08. The question is who will pay for it all? Yes the new tax reforms are bringing in much needed revenue, but I would like to see a balance between infrastructure and debt reduction. It would also be refreshing to hear about some major investments into education.

PANAMA.  The development of mega-infrastructure in the country continues at a dizzying pace.

And yesterday, as part of a press conference to publicize the results of the National Economic Council, the Minister of Economy and Finance, Alberto Vallarino, announced that the government is considering the competitive bidding construction and management of two new megaports in the Pacific area.

  The minister explained that his firm is in talks with Panama Canal Authority (ACP) and the Panama Maritime Authority (AMP) to evaluate the details of both projects.

  The official said the first of these terminals would be located north of Panama Ports and the second would be built in the area of Rodman.

  This latest project, the minister said Vallarino, would be built with materials from the land extraction of enlargement of the canal.

COMPETITION

These two megaports would join Manzanillo International Terminal (MIT) and Panama Ports.

MIT started operations on April 16, 1995 at a location near the Atlantic entrance of the Panama Canal, immediately adjacent to the Colon Free Trade Zone (FTZ).

  This company provides port services to shipping lines transiting through the Panama Canal or serving the Caribbean region. It currently has 700 employees.

  MIT is a partnership between Carrix, Inc. and families Motta and Heilbron.

 SSA Marine, the main division of Carrix, is the marine terminal operator, stevedore and rail largest United States.  Carrix is a privately held company based in Seattle, Washington.

  Panama Ports Company (PPC) operates two ports, one on each side of the Panama Canal.  The port of Balboa is located on the Pacific side and the port of Cristobal Colon.

The company began operations in Panama through a renewable 25-year concession (Law 5 of January 16, 1997) that the State gave to the administration of both ports.

  Within the Strategic Plan 2010-2014 drafted by the national government set out the intention of investing in that period one billion dollars to stimulate greatly value-added logistics activities.

Weeks ago, after a visit to the country, Carlos Gallegos, secretary of the American Committee on Ports of the Organization of American States, said "progress has been been made at Port Panama in recent years and should be considered by other countries in the Americas as a model, combining logistics, port security and competitiveness, especially as a machine that, despite the global economic crisis, has remained a productive sector that represents a significant economic boost. "

Copa to connect Chiriqui and Bocas to U.S. and S.A. in 2011

This had been rumored for some time and now it looks like it may become reality. I have been skeptical because of the lack of tourism infrastructure in Chiriqui and the inadequacy of the existing airport. What makes me hopeful now is the CEO of Copa, Pedro Heilbron, making the statement " that connectivity will be established through the Tocumen airport with routes in the U.S. and South America where there is more potential tourists interested in visiting these two regions. in addition, the David Airport is being significantly upgraded in order to handle larger planes and more passengers in the terminal.

Heilbron goes on to say "We have already begun planning the operation and we are in the process of selection of aircraft and operators with which to develop this project"

There is still the matter of having sufficient accommodations to handle a plane load of tourists, but when the connectivity is there, investors will find a way to make that happen. This is wonderful news for those of us who have made investments into the area. I think we can thank the Tourism manager Salo Shamah for this.

He has also managed to put together some form of Tourist insurance program to the tune of nearly $11 million a year in Premiums. According to the Government website this policy will cover tourist while they are in the country as well as Panamanians when they travel abroad. There are no details on just what is covered. Is it emergency medical and evacuations, life or what? Hopefully these details will be revealed soon. In any case it is a real marketing tool and another idea put together by the tourism manager.

So you think safe deposit boxes are safe?

Several readers sent me this disconcerting article  this week. What strikes me the most is the articles slant that everyone is a criminal until they prove otherwise, and the reporter is OK with that. I wonder how he would react if one of those boxes was his?

Here are some of the more disturbing excerpts, but you can read the whole story here at the Telegraph... and a more balanced perspective here at Sott.net.

Police have seized a potential £1 billion “treasure trove” of cash, drugs and guns in an unprecedented raid on concrete vaults holding 7,000 safety deposit boxes.

More than 300 officers and staff were involved in simultaneous raids at three depots in London’s Park Lane, Hampstead and Edgware. Officers have secured the concrete and steel vaults and will take several weeks to remove each box, using angle grinders, to a secret location where they will be prized open with diamond-tipped drills.

Although the operation is being treated as a money laundering investigation senior officers admitted that there was a potential to uncover a massive range of “ill-gotten gains” stored at the depots, including expensive jewellery, computer data, stolen artworks and sculptures.

Some of the boxes are only A4-sized, while others are “walk-in” vaults.

Although they do not know how many of the 7,000 boxes are being rented - at around £100-a-year - police suspect up to 90 per cent of them may hold criminal assets.

Mr Yates said that detectives expect to seize a “substantial amount” of criminal assets from the searches.

“Operation Rize is a money laundering investigation and is entirely unprecedented, one of the largest of its kind ever undertaken in the UK,” he said.

“In the past safety deposit boxes have been searched on an individual basis often resulting in the recovery of guns, drugs and cash. We believe that this operation has the potential to impact upon many layers of serious crime.”

Members of the public who have innocently and legally stored their valuables were “inevitably” going to get swept up in the disruption, it was predicted. Police said they could use a freephone number - 0800 030 4613 - to claim back their goods.

A picture worth a thousand words

A reader pointed out to me that an article I posted earlier from Lew Rockwell had an important graph attached which I failed to include. After looking at it I would have to agree that is is an eye opener. Here are some of "Richard"s astute comments. Thanks Richard for sharing.

The Source of the attached Chart is the white house: office of management and budget -
 
Please don't just stare at the attached Chart about federal surpluses & DEFICITS like a deer stunned & dazed in the headlights!
 
The Chart begins way back in 1895 & from then until sometime in the 1970's - amazingly for most years the feds spent only about what they collected (Yea Right & I believe in the Easter Bunny too!)
 
When you take a closer look at the Chart you can see the relatively small DEFICIT spending blips for World War 1 & then in the 1940's for World War 2 - I think the Chart may also show DEFICIT spending blips for the Korean War & Vietnam.
 
But then in the 1970's - primarily because of bigger & bigger & bigger government - the federal budget starts to look, act & sound somewhat like a giant humongous toilet bowl getting ready to flush - & what else can the federal budget DEFICITS remind you of when you see how the most recent graph line in the Chart has absolutely "tanked" - now a $1.4 Trillion Dollar DEFICIT -
That is Trillion with a T - $1,400,000,000,000.00 - OUCH!
 
So who is going to pay for all this massive waste of taxpayer money?
 
???????? Click image to enlarge.