P A N A M A
COUNTRY OVERVIEW
BASIC DATA
Capital City:
Panama City
Land Area:
75,517 sq km
Population:
3.46M
Main Towns:
Panama City 1.346M
Climate:
Tropical maritime; Hot, humid, cloudy; Prolonged rainy season (May to
January), short dry season (January to May)
Language:
Spanish (official), English
Measures:
Metric System
Currency:
USD
Time:
GMT -5
Holidays:
(2012 Dates)
New Year’s Day: January 1st
New Year’s Holiday: January 2nd
Martyrs’ Day: January 9
Carnival: February 20
Carnival: February 21
Carnival: February 22
Maundy Thursday: April 5
Good Friday: April 6
Holy Saturday: April 7
Labor Day: May 1
Independence Day: November 3
Flag Day: November 4
Colon Day: November 5
Los Santos Uprising Day: November 10
Independence Day: November 28
Christmas Day: December 25
Government:
PresidentRicardo Martinelli
Vice-PresidentJuan Carlos Varela
AgricultureOscar Osorio
Foreign AffairsRoberto Henriquez
Economy & Finance
Frank De Lima
EducationLucinda Molinar
Government & Justice
Jorge Ricardo Fabrega
HealthFranklin Vergara
HousingJose Domingo Arias
LaborAlma Cortéz
PresidencyDemetrio Papadimitriu
Public WorksFederico Suárez
Social Development
Guillermo Ferruno
Trade & Industry
Ricardo Quijano
Source: The Economist Intelligence
Unit as of February 2012
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A. POLITICAL STRUCTURE
Official Name
Republic of Panama
Form of State
Presidential democracy with National Assembly and an independent judicial system
The Executive
The president is the head of state, elected for a five-year term by universal adult suffrage;
there is a vice-president and a cabinet appointed by the president.
National Legislature
National Assembly; a 71-member unicameral legislature elected directly by adult suffrage
for a five-year term
Legal System
The president proposes judges for the Supreme Court; they are approved by the National
Assembly and sit for terms of ten years; a system of appeal originates in courts of first
instance, rising to the Supreme Court at the apex.
National Elections
May 3rd 2009; next elections (legislative and presidential) due in May 2014.
National Government
Ricardo MArtinelli won a landslide victory in the May 3rd 2009 presidential election. His
Alianza por el Cambio coalition also won a majority in the National Assembly. The new
government was sworn in on July 1st 2009
Main Political Organizations
Government: Alianza por el Camio, a political alliance formed to contest the 2009 elections
comprising Mr. Martinelli’s Cambio Democrático (CD), the Partido Panameñista (PP) and
the Movimiento Liberal Republicano Nacionalista (Molirena)
Opposition: Partido Revolucionario Democrático (PRD), Partido Popular (PP)
Source: The Economist Intelligence Unit as of February 2012
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B. POLITICAL OUTLOOK 2012 – 2016
The risk of political instability has abated after three congressmen from the Partido
Panameñista (PP) joined the ruling Cambio Democrático (CD), giving the latter a working
majority in the National Assembly. After taking office in 2009, the president, Ricardo
Martinelli, had governed with the support of his party (the CD), the PP and several small
parties. However, the departure of the PP from the coalition in September left the CD without
a majority, raising the prospect of legislative gridlock. With the CD now able to push through
legislation, the risk of a political crisis and an early election has dropped significantly.
Although the CD has just a slim 36-35 majority in the 71-seat legislature, it stands to benefit
from further defections from the Partido Revolucionario Democrático (PRD), the main
opposition (and previous governing) party, which has suffered from factional infighting since
its election defeat in 2009. The PRD looks to face further difficulties following the extradition
in December 2011 of a military dictator, Manuel Noriega (1983-89), from France, as the PRD
was closely associated with the military.
Even though governability should remain secure during the remainder of the Martinelli
administration, there will be a greater risk of social unrest. Personal charisma and a booming
economy sustained high levels of popularity early in Mr Martinelli’s term, but the president’s
approval ratings have fallen sharply in recent months, following several corruption scandals.
There is also the perception that the president governs in a heavy-handed manner. Among
other things, he has submitted legislation to Congress that should have been submitted to
the judiciary (as it involved changes to the constitution) and other reform bills that have
been poorly thought through and/or vaguely worded. A strike in the healthcare sector
during October-November came in response to a bill that was seeking to encourage publicprivate partnerships (PPPs) in construction, but a lack of detail in the drafting of the bill
meant that workers feared a privatization of the health system (which was apparently not
the government’s intention). Similar to previous instances of social unrest, Mr Martinelli has
backtracked and withdrawn the bill pending further consultation. This style of governance
is likely to continue, with Mr Martinelli seeking rapid progress on his legislative agenda, but
with policy reversals in case of widespread opposition in order to restore stability. However,
a return to high approval ratings is unlikely in the context of recent corruption allegation and
perceptions that violent crime is on the rise.
The US Congress has finally ratified a free-trade agreement (FTA) with Panama that was
signed in mid-2007. This came after Panama’s stronger commitment to the exchange of
tax information with other jurisdictions, with the approval of a tax information exchange
agreement (TIEA) with the US in April resulting in a much tougher stance on banking secrecy.
The FTA reflects the Panama government’s overall stance of focusing on boosting ties with
large trading partners (including countries in Asia). As a result, relations with other Central
American economies will remain of secondary importance during 2012-16.
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C. ECONOMIC PERFORMANCE
A sharp increase in imports linked to the government’s heavy capital investment programme
contributed to a 31% year-on-year widening of the current-account deficit in the first
nine months of 2011, according to the latest available data from the Contraloría General
(comptroller-general). Spending on imports was up 37% up on the same period of 2010.
Key infrastructure projects leading to heavy demand for capital goods imports included the
Canal expansion and an urban metro scheme in the capital. Net financial inflows increased
by 70% year on year. Despite deteriorating global conditions, foreign direct investment (FDI)
proved resilient, with all indications pointing to a record year for foreign investment in 2011.
surpassing the boom years of 2006, when FDI was boosted by banking sector consolidation.
After a series of sharp declines since 2009, domestic exports (excluding reexports from the
Zona Libre de Colón, Panama.s free-trade zone) have staged a recovery since the second
quarter of 2011. Domestic export earnings were up by almost 60% in the first nine months of
2011 compared with the same period in the previous year. After a dire two and a half years,
agricultural exports also registered double-digit increases, although their overall contribution
to export earnings is minimal. Gold exports also increased by 68% year on year in the first
nine months of last year. Indeed, since commercial production began in 2010 at the country’s
flagship gold mine, revenue from gold has risen rapidly and now represents the largest
category amongst domestic exports. With earnings from domestic exports amounting to
less than 10% of import spending, the increase in export earnings was insufficient to prevent
a further widening in the structural merchandise trade deficit. The trade shortfall expanded
by almost 24% in the first nine months of 2011. Capital goods imports, driven up by public
and private infrastructure investment, rose by 44%.with transport and telecommunications
equipment both major import categories. Bolstered by high levels of consumer confidence
and strong growth in bank lending on the back of historically low interest rates, imports of
consumer goods also rose rapidly, with an expansion of 26%.
Domestic exports account for a small fraction of total balance-of-payment exports, dwarfed
by the earnings from re-exports from the Zona Libre de Colón (ZLC). Re-exports from ZLC
(mainly to Puerto Rico, Venezuela and Colombia) increased by 40% in the first nine months
of 2011. With ZLC imports (mainly from Singapore, China and the US) increasing by almost
47% and ZLC traders restocking in anticipation of ongoing strong regional demand, net
exports from the ZLC fell by 38%, to US$368m. As a result, the balance-of-payments trade
deficit widened by 34%, or US$1.2bn, to US$4.8bn. The services surplus, which is key to
helping to offset structural trade deficits, increased by almost 25%. The improvement was
based on a 41% increase in maritime transport receipts, owing mainly to an increase in toll
revenue, up by 20% following the January 2011 toll increases, and a 29% rise in the volume
of containerized cargo handled by the private ports system. In addition, tourism receipts
played an important role, with a 16% rise in passenger arrivals and an increase in tourism
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receipts of 16%. The income deficit fell by 5% as a result of increased investment income
earned by domestic banks on overseas investments and a reduction in debt servicing costs
on public external debt.
With the current-account deficit widening by US$792m, FDI inflows continued to play a key
financing role. FDI totalled US$2.1bn in the first nine months of 2011, a 20% increase on the
same period of 2010. Around one-half of the total represented reinvested profits by foreign
companies operating in Panama. Other investment was bolstered by increased deposits in
domestic banks by overseas investors, which rose to US$2.9bn, from US$2.1bn a year earlier.
The remainder of the financing requirement was met by the use of reserves held by the
state-owned Banco Nacional de Panamá and the Fondo Fiduciario para el Desarollo (FFD,
the state development trust fund), which were drawn on to finance domestic infrastructure
investment obligations.
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D. POLITICAL FORECAST
Economic Growth
The expansion of the Canal, combined with several other large-scale investment projects,
will result in extremely firm GDP growth in 2012-14, at an annual average of 6.2%.
Although this represents a slowdown from a stellar rate of 9.5% in 2011, this is still a strong
performance. We expect growth to dip to a six-year low of 4.6% in 2015, before picking
up to 5.9% in 2016. This forecast assumes that the stimulus effect of public construction
fades, but that it is partly offset by inward investment in manufacturing. At an average
of 5.1% in 2012-16, private consumption growth will remain strong. The government’s
ambitious spending plans will fuel firmer growth in public consumption (particularly in
2011-12), while the ongoing Canal expansion and construction of an urban metro system
in the capital, Panama City, will drive fixed investment in those years. Both export and
import volumes will dip in 2012 as global trade flows decelerate, but we assume that this
will be relatively mild and short lived, picking up again from 2013. Import growth will
outstrip that of exports for most of the forecast period, owing to the import-heavy nature
of infrastructure investment.
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COUNTRY OVERVIEW
On the supply side, growth will be led by the services sector, particularly the key transport
and retail sub-sectors. Tourism growth will slow, as weaker activity in source markets
offsets government efforts to promote Panama as a holiday destination. Construction
growth will remain firm, with soaring non- residential projects helping to offset over-supply
in the residential sub-sector. Despite firm credit growth and still-high soft commodity
prices, agriculture will remain comparatively weak, reflecting infrastructure deficiencies
that will cap output and competitiveness challenges from US goods that will enter dutyfree following the ratification of the FTA with the US.
Inflation
Despite an easing of supply-side pressures that had arisen from soaring commodity
prices, firm demand-side pressures are expected to keep inflation elevated in the next
few months. After ending 2011 at 6.8% year on year, we expect inflation to fall in 2012, to
4.5% by year-end. However, there are upside risks to our inflation forecast, particularly
if a third bout of quantitative easing in the US in the coming months feeds through to a
weakening of the US dollar (not currently our baseline scenario). Inflation is expected to
fall below 4% in the second half of 2013 and to remain broadly within a 3-4% range during
2014- 16. However, this will remain high by historical comparison (inflation averaged 3%
in 2000-10).
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Exchange Rates
Reflecting ongoing concerns about the euro zone, we expect the dollar to strengthen to
an average of US$1.27:€1 in 2012 and US$1.24:€1 in 2013, before the euro finally stabilizes
and regains some lost ground towards the end of the forecast period. However, risks to
the euro are on the downside: a substantial weakening could occur very rapidly if the
euro zone did begin to fall apart. A stronger US dollar will erode the competitiveness of
Panama’s exports to the EU, but given that less than 20% of domestic exports are sold
in this market, Panama’s trading prospects will not be seriously affected. Shifts in the
real exchange rate, in relation to trading partners other than the US, remain of limited
significance to trade performance, given the high import content of re-exports.
External Sector
We expect large current-account deficits in 2012-14, averaging 12.3% of GDP per year,
but these will be investment-driven and largely offset by FDI inflows. The large currentaccount deficit will largely reflect a temporary jump in import spending related to the
Canal expansion and other investment projects, and will fall to 10.7% and 8.1% of GDP
in 2015 and 2016, respectively. Weaker global trade growth in 2012 will temporarily slow
the expansion of the services surplus, while the income deficit will remain large, owing
to profit repatriation by foreign companies operating in Panama. Assuming high levels of
other capital inflows (including portfolio investment and debt), the stock of international
reserves is expected to rise from US$2.3bn at end-2011 to US$4.1bn at end-2016.
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CITI SOLUTIONS AND SERVICES
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P A N A M A
BANKING SYSTEM
A. BANKS IN PANAMA
As of 2011 there are 81 banks in Panama and 14 representative offices including, 2 government
banks, 47 banks with general licenses, 32 banks with international licenses, and 14 banks
with representation licenses. Most institutions are commercial banks.
The comparative advantages of Panama´s location based on a U.S. Dollar medium of exchange,
offered the unique conditions for the creation and development of an International Banking
Center. This International Banking Center specializes in external operations, in counting
on a flexible fiscal system, in government incentives for investments, and in a modern
telecommunications system. The telecommunications system permitted the registration of
innumerable international financial transactions to concentrate from Panama.
Superintendence of banks regulates Panama’s banking system. The new legislation
establishes a framework with clear faculties and powers for the regulator. Additionally, it
strengthens the institutional aspect in providing administrative and financial autonomy to
the Superintendence of Banks. Among the main duties of the Superintendent are: to watch
for the stability of the banking system, supervise banks and economic groups, grant and
cancel banking licenses, decree corrective measures with respect to banks (designation
of advisors, intervention, reorganization, forced liquidation, imposition of fines, etc.), in
addition to authorizing bank mergers.
All major banks are based in Panama City, the capital.
B. CITIBANK IN PANAMA
Citibank has been in Panama since 1904, and offers the following banking services:
• Full arrange of Cash Management Services
• Trade Services and Finance
• Channel Finance
• Agency & Trust and Direct Custody Services
• Treasury Services
• Credit Services - Lending
• Investment Banking Services
• Leasing Services (ABF)
• Buy/sell bonds, stocks, mutual funds
• Consumer Banking
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BANKING SYSTEM
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P A N A M A
CLEARING SYSTEM
A. CLEARINGHOUSE
Panama does not have a Central Bank. The state-owned Banco Nacional de Panamá (BNP)
most closely resembles a national central bank. It serves as a repository for public-sector
funds and as the government’s official banker and treasurer. BNP keeps a percentage of
legal cash reserves of other banks in the financial system and provides a clearing service for
checks through its Compensation House (Cámara de Compensación), where banks meet the
obligations on checks drawn against them.
The Clearing system in Panama takes place from Monday through Friday, and is centralized
through the Banco Nacional de Panama.
B. CITI PANAMA CLEARING SCHEDULE
Outgoing Funds Transfer
Cut-off Time: 1 pm
Funding Date: Same day
Client Dr. /Cr. Date: Same day
Client Value Date: Same Day
Incoming Funds Transfer
Cut-off Time: 3 pm
Funding Date: Same day
Client Dr. /Cr. Date: Same day
Client Value Date: Same Day
Book to Book
Cut-off Time: 6 pm electronic – 1 pm manual
Funding Date: Same day
Client Dr. /Cr. Date: Same day
Client Value Date: Same Day
FCY Payment
Cut-off Time: 1 pm
Funding Date: Same day
Client Dr. /Cr. Date: Same day
Client Value Date: Day 2
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CLEARING SYSTEM
Incoming Checks
Cut-off Time: 2 pm
Funding Date: Next day
Client Dr. /Cr. Date: Same day
Client Value Date: 2nd day after deposit
C. PROCESS DESCRIPTION
Day 1: The client deposits a local currency check in their account.
Day 2: Early in the morning, Citibank presents its checks for clearing at the Banco Nacional
de Panama. At the end of each session, if the balance is positive in favor of Citibank, then the
Banco Nacional deposits the credit in Citibank’s current account in New York on the same
day. If the balance is negative for Citibank, then Citibank credits Banco Nacional’s account in
N.Y. Banks are allowed to return checks in case of insufficient funds, incorrect signature, etc.
Days 3: Funds were available
D. FOREIGN CHECK CLEARING
U.S. Dollar checks drawn against banks domiciled in the U.S. are sent daily via courier to
Citibank NY branch. The clearing takes approximately 2 to 3 banking days, however due
to credit considerations; banks usually place a 15 day hold on availability of funds. Foreign
currency checks are handled on a collection basis.
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P A N A M A
FOREIGN EXCHANGE CONTROLS
Panama has no exchange controls, but it does have reporting requirements designed to
thwart money-laundering and terrorist financing. Amounts over U.S. $10,000 brought in or
taken out of the country in cash or financial instruments must be reported to the Ministry
of Economy and Finance (Ministerio de Economía y Finanzas) customs offices. Offices
are located at all ports of entry. No reporting restrictions apply to companies or private
individuals remitting royalties or fees, dividends, profits, or interest or principal on foreign
loans. The remittance process requires disclosure of the beneficiary and its representative,
along with the physical destination of funds.
The Banking Superintendence (Superintendencia de Bancos) passed further regulations
tightening controls on money-laundering in 2005 and 2008. Agreement No. 12.2005, passed
in December 2005, requires that banks apply due diligence to prevent money-laundering,
including paying special attention to transfers over U.S. $10,000 and developing client
profiles. Executive Decree 52 (April 2008) reiterates the “know your client” policies outlined
in Agreement 2-2005 and strengthens the Superintendence’s mandate for monitoring bank’s
compliance with anti-money-laundering rules.
A. TAXES
The government classifies income in three categories for tax purposes:
•
•
•
Panamanian-sourced income derived from sales or services anywhere in the country.
Income derived from the export of goods manufactured in Panama or that pass over Panamanian soil.
Non-Panamanian income from the management of non-Panamanian operations, from dividends and similar income paid by non-Panamanian entities and from the sale of goods not entering the country.
The government does not tax income earned from non-Panamanian sources - a policy
that has made the country a popular place to base holding and sales operations. The law
specifically states that the following activities do not produce income that is taxable:
• Invoicing from an office in Panama the sale of goods that do not enter the country.
• Handling offshore transactions from an office in Panama.
• Distributing dividends derived abroad, including income from the above 2.
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Corporate Income Tax
According to Law 6, of February 3rd 2005, corporate income tax is calculated from the
higher product between 1.4% of gross revenues and 25% of net profits. This is valid for all
companies, regardless of size, sector or performance – except for companies with special
exclusive contracts with the government. Such companies include, those participating in
privatizations or special infrastructure projects, or those operating in the Colón Free Zone
that are not subject to corporate income tax. Logistics Service zones, new companies
establishing hubs in Panama (law 41), are subject to lower Corporate taxes.
Withholding of Interest
Local loans have no withholding taxes; however, interest on foreign loans is subject to a
15% WHT. Commercial and non-subsidized loans bear a 1% interest subsidy tax (FECI).
Other Taxes
Sales tax is 7%.
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P A N A M A
TRADE REGULATIONS
A. IMPORT CREDIT
Banks provide commercial credit for imports. Terms and rates are the same as for other
types of borrowing.
B. EXPORT CREDIT
No special export-credit facilities exist in Panama. Banco Latinoamericano de Exportaciones,
which is based in Panama, finances exports from Latin America. It serves as a regional export
bank, offering a wide range of services to exporting firms. Its principal aim is to promote
non-traditional Latin American exports by providing short- and medium-term credit. The
bank is involved purely in trade financing of exports from one country to another and does
not provide finance for the manufacture of exports.
C. REGIONAL TRADE ASSOCIATIONS
•
•
•
•
•
Partial* bi-lateral Agreement between Panama and Mexico:
Preferential treatment: Max. 70% Min. 50%
Partial* bi-lateral Agreement between Panama and Colombia:
Preferential treatment: Max. 80% Min. 55%
Panama recently signed a bi-lateral agreement with USA
*“Partial” implies that some Panamanian products receive a tax payment exemption equivalent to the
percentage indicated for particular products.
The following countries have signed Free Trade and Preferential Exchange Agreements with
Panama:
•
•
•
•
•
•
•
•
Costa Rica
El Salvador
Guatemala
Honduras
USA (CAFTA)
Nicaragua
Singapore
Taiwan
Panama has joined the WTA; certain trade import tariffs are being reduced.
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INVESTMENT OPPORTUNITIES
Traditional savings accounts, overnight deposits, time deposits and certificates of deposit
are the main investment vehicles for excess cash in Panama. Treasury bills, repurchase
agreements and short-term commercial paper gained popularity in the 1990s and are all
traded on the Panama Stock Exchange (Bolsa de Valores de Panamá.BVP). Volumes and
yields of these instruments can all vary considerably.
A. TIME DEPOSITS
For overnight time deposits, the minimum amount is U.S. $100,000. Foreign currency and
interbank time deposits are not regulated and may be for any amount or duration. Rates are
negotiable, depending on the client-bank relationship.
B. TREASURY BILLS
Bills are short term papers used to manage liquidity. The market is very active and the tenor
varies from six to twelve months depending on the budget needs of the issuer. The yields
during the last 12 months reached Libor plus 30bps on average.
C. TREASURY NOTES
Treasury Notes became popular at the beginning of the 2000 decade when the Government
decided to launch longer tenor capital markets instruments.
Recently the Government started the Market Makers program in order to provide liquidity
to these papers. The last tranche of treasury notes yielded between 1.45% and 3.45%
(depending on the tenor).
D. STRUCTURED NOTES
Citi is an ample player in structured notes. We offer investments linked to credits (sovereigns,
corporate), commodities (energy, metals and soft), rates (Libor, Swaps, Treasuries), and FX
rates (EUR, GBP, etc).
These investments are offered to more experienced customers who are exposed to any of
these market factors.
For more information, please call the desk at 507-210-5960
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INVESTMENT OPPORTUNITIES
E. STOCK MARKET - CITIVALORES
The Panama Stock Exchange (Bolsa de Valores de Panamá.BVP), is the country’s only
securities market and it opened on June 26th 1990. A self-regulating entity created
under Decree 44 of 1988, the exchange also abides by the rules of the National Securities
Commission (Comisión Nacional de Valores.CNV). Shares, bonds, mutual funds and other
national and international government and private-company issues are traded on the BVP.
The Panama Stock Exchange (Bolsa de Valores de Panamá.BVP) trades electronically from
10am to 3pm, Monday through Friday. Electronic trading, previously available only on the
secondary market, was extended to the primary market in July 2001. The exchange was
the second in Central America (following Costa Rica) to install an electronic trading system.
It bought the U.S. $500,000 software from Chile’s Open Gates, a joint venture involving
NASDAQ, Sun Microsystems and the Chilean stock exchange. The system allows brokers to
trade from their offices in real time.
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CITI SOLUTIONS AND SERVICES
A. CITIBANK’S ACCOUNTS SERVICES SOLUTION IN PANAMA
Resident and Non Resident Smart Accounts U.S. Dollars
• Interest Rate: Current accounts do not earn interests
• Min. Avg. Balance Requirement: U.S. $10 million (monthly)
• Overdraft Facility: Is available on a case by case basis.
Documentation Requirements
•
•
•
•
•
•
•
•
Due Diligence form (CADD): Filled out with name, complete address, telephone number,
type of business, references, and other information, all verified by bank officer.
Signature cards: Verified by bank officer. Copies of local identity cards (“Cedulas de identidad”) or passports are also included.
General Resolution: Contains the corporations’ instructions regarding the handling of the account; specifies if single or joint signatures are required, signed by both the secretary and president of the corporation.
Global and Local Account Conditions
Deed of Incorporation: Copy of deed of incorporation of the company, duly registered.
Meeting of Board of Directors: Copy of the minutes of the meeting where the board of directors authorizes the opening of the account with Citibank, N.A. (optional).
Check Book: Signed checkbook request form. If a special checkbook is required, the company must send a sample and specifications.
Bank and Commercial References
B. CITIBANK’S PAYMENT SOLUTIONS IN PANAMA
Cross-Border Payments
WorldLinkSM *
CitidirectSM *
Local Payments
Citibank PayLinkSM *
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CITI SOLUTIONS AND SERVICES
C. CITIBANK’S COLLECTIONS SOLUTIONS IN PANAMA
International Collections
Incoming Funds Transfer: International transfers may be received in U.S. Dollars and have
a same day value date if they are received before 3:00pm.
Domestic Collections
Domestic fund transfers are made through an ACH or a manager’s check, which normally
has a two days holding period. Speedcollect and Regional Collections are available.
D. DELIVERY SYSTEMS AVAILABLE
Citidirect is our customer internet banking platform.
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MARKET GUIDE FOR TREASURY
Allowed —
No material
restrictions
Allowed —
Straightforward
regulations,
approval or
license
Allowed —
Challenging
regulatory
approval or
license
Allowed —
Subject to a
complex set
of rules
Strictly
Prohibited
Operating Accounts1,2 Non-ResidentsResidents
Onshore local currency
Onshore foreign currency
Offshore local currency
Offshore foreign currency
OverdraftsNon-ResidentsResidents
Onshore local currency
Onshore foreign currency
Interest-Bearing Accounts
Non-ResidentsResidents
Onshore local currency operating accounts
Onshore foreign currency operating accounts
Time Deposits Non-ResidentsResidents
Onshore local currency
Onshore foreign currency
Domestic Notional Pooling
Non-ResidentsResidents
Inter-company Lending
Non-Resident to Resident Onshore local currency
Onshore foreign currency
Resident toNon-resident
Onshore local currency
Onshore foreign currency
Non-Residents
Onshore local currency
Onshore foreign currency
Residents
FX Convertibility/Transferability
• Local currency is freely convertible domestic and offshore.
Tax and Transfer Pricing Considerations
• No restrictions. Local Tax: 7% of commission.
For more information, please visit www.transactionservices.citi.com.
Notes:
1 Local currency is USD.
2 Although operating accounts in foreign currency (other than USD) are allowed, this is not a market common practice.
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CONTACT INFORMATION
Industry Sector Heads
Carolina Juan
Treasury and Trade Solutions Client Sales Management
Latin America & Mexico Head
Citi Transaction Services
Email: [email protected]
Cel: + 57 (316) 743 - 9347
Of. Phone: +57 (1) 639 - 4026
Industrials Sector
Ines Vargas Barrera
Email: [email protected]
Cel: +52 (181) 8366 - 5190
Of. Phone: +52 (81) 1226 - 8525
Branding, Consumer and Healthcare Sector
Oscar Mazza
Email: [email protected]
Cel: +1 (305) 588 - 9396
Of. Phone: +1 (305) 347 - 1336
Technology, Media and Telecom Sector
Gabriel Kirestian
Email: [email protected]
Cel: +54 (911) 3301 - 4826
Of. Phone: +54 (11) 4329 - 1516
Energy, Power and Chemicals Sector
Peter Langshaw
Email: [email protected]
Cel: +55 (11) 6183 - 6958
Of. Phone: +55 (11) 6183 - 6958
Public Sector
Jorg Paasche
Email: [email protected]
Cel: +52 (1) 55 5453 - 0103
Of. Phone: +52 (55) 2226 - 6020
Based: Mexico DF, Mexico
Non Bank FI Sector (NFBI)
Ricardo Dessy
Email: [email protected]
Cel: +54 (911) 6641 - 9752
Of. Phone: +54 (11) 4329 - 1471
Based: Buenos Aires, Argentina
442
P A N A M A
Brazil
Adoniro Cestari
Email: [email protected]
Cel: +55 (11) 7130 - 9447
Of. Phone: +55 (11) 4009 - 7838
Based: Sao Paulo, Brazil
Central America
Evelin Madrid
Email: [email protected]
Cel: + 506 8701 - 4529
Of. Phone: +506 2588 - 7541
Based: San Jose, Costa Rica
Mexico
Miguel Ytuarte
Email: [email protected]
Cel: +52 (1) 55 4088 - 2284
Of. Phone: +5255 (1226) 8895
Based: Mexico DF, Mexico
Sales Heads
Andean Region
Carolina Juan
Email: [email protected]
Cel: + 57 (316) 743 - 9347
Of. Phone: +57 (1) 639 - 4026
Based: Bogota, Colombia
Argentina
Adrian Scosceira
Email: [email protected]
Cel: +54 (911) 5674 - 6966
Of. Phone: +54 (11) 4329 - 1194
Based: Buenos Aires, Argentina
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