PANAMA TODAY
EDITION XII
In this Issue...
Dear Client and Colleague,
From Our Office
Do not hesitate to contact us if you require further information on the
news articles we are sharing with you.
$2,850 million for Public
Tenders
First Place II Competition of
Legal Monographs
Banking assets growth in 9%
Investment: Aerotropolis
Investment: New Public
Transportation System
Investment: Processing Zones New Special System
Works of of Juan Pablo
Fabrega in the OAS
Investment: Auctions for $12
millions
Banking: Update on
Regulations
Treaties: Brazil & Panama
Panama and the OECDE
Always at your service,
FABREGA, MOLINO & MULINO
Attorneys-at-Law
Public Tenders will reach US$2.850 million in 2011
The Panamanian government announced that during 2011 it will
allocate more than US$2.850 million in public tenders to develop
megaprojects.
According to the newspaper, La Estrella de Panama, among the main
projects to tender are the Financial Tower, the Rearrangement of
Roads, the City Hospital, a new Convention Center and the
construction of 37 Health Centers, together with the Governmental City,
eight markets for the Cold Chain system and hydroelectric projects.
Aristides Hernandez, President of Latin Consulting, pointed out to La
Estrella de Panama that these public investments will be the main
motor of the Panamanian economy. "No other government in the
history has had as many economic resources as this one" he said.
This announce goes along with the declarations of Ricardo Martinelli,
President of the Republic of Panama where he indicated that the
Panamanian economy will grow 8 or 9 percent in 2011 and will make it
one of the most dynamic economy of Latin America. If such prediction
will come true, the Panamanian economy will place itself above that of
Peru and Chile, countries that were viewed as "leaders of the region"
by the Panamanian President.
FROM OUR OFFICE
Transaction: Panama City
Subway (Metro de Panama)
Source: Estrella de Panama, January 2011.
November 2010
II Competition of Legal Monographs
Attorneys-at-law COLADE and FELABAN
Fabrega, Molino & Mulino, legal
advisors of the Consortium
AYESA- Metro de BarcelonaINELECTRA, awarded the
abbreviated tender for the project
management services and
technical assistance to operate
Line 1 of the Metro de Panama
convened by the Secretary of the
Metro de Panama.
During the XXIX Latin American Congress of Financial Law, our
Partner, Juan Pablo Fabrega Polleri won first prize at the Competition
of Legal Monographs for Senior Attorneys-in-law, second edition,
organized by the Latin American Committee on Financial Law
(COLADE as per its Spanish acronym) of the Latin American Banking
Federation (FELABAN as per its Spanish acronym) for his essay
"Private Foundations as subjects of Banking Relations for Assets
Planning and Hereditary Succession." (October 2010).
Attorney-at-law: Ana Lorena
Morales
for
Senior
FABREGA | MOLINO | MULINO
Fabrega, Molino & Mulino
assisted to:
AIJA
The
conference
of
the
International Association of
Young Lawyers (AIJA), "Trust
under attack" Malta, October
2010 - Jose Agustin Preciado
presented an essay entitled
"What level of protection does
a Panamanian Trust offer? Do
the Panamanian courts mount a
robust defence against an
attack by a foreign court?"
PANAMA TODAY
Banking assets growth in 9.0%
The International Banking Center in the course of the 2010 third
trimester registered positive results, having a 9% growth of its assets,
as stated by the Superintendency of Banks of Panama.
The system assets add up to $55.724 million (US$54.641 million)
which entails a year-on-year growth of 5.1%. This positive dynamic
during this period is based on significant increases in the credit portfolio
(12.19%) and by greater levels of investment (15.43%) affirms the
Panama America newspaper.
Whereas the accumulated net income from January to September
2009 amounted to $802 million (US$786.4 million) with a growth of
2.5%.
Source: El Economista/Panama - Monday, 03 January 2011.
----------------------------------ASIPI
XV
Workshops
and
Administration Council of the
ASIPI
(Inter-American
Association
of
Intellectual
Property, November/December
2010 - Farah Molino.
Panama inaugurates a new public transportation system
-----------------------------------Annual Meeting of the Interlex
Group
One of the new system changes is that all drivers will have a fixed
salary and be hired by a company administering the system.
Authorities hope to reduce waiting time at bus stops and bring security
to transportation.
Juan Pablo Fabrega, Partner of
Fabrega, Molino & Mulino,
represented the law firm during
the 2010 Annual Meeting of The
Interlex Group in Amsterdam.
Fabrega, Molino & Mulino is
Panama's representative in this
association of independent law
firms in the world.
SIGNIFICANT PROGRESS OF
THE DIGITAL SIGNATURE IN
PANAMA
By Manuel Espino
...the central government has
stipulated within its 2011
budget, a quadruple of million
as an initial fund to start the
electronic signature project in all
documents to be processed in
the state institutions, so as to
eliminate the paper and process
documents
digitally...
(Full
article)
On 28th December 2010 a new public transportation system that will
replace the old school buses imported from United States started
operations.
Together with the Metrobus, the processes to build the Panama Metro
are already in progress.
First Aerotropolis in Latin America
On 2nd December 2010, Mr. Juan Luis Chevalier, CEO of Panatropolis
and Mr. Joseph Homsany, Director of this new company, announced in
the Hotel Miramar Continental that they will build the first aerotropolis
of Latin America in Panama.
This announcement highlighted that this project will be the most
innovated logistic platform of the region and same will have all urban
facilities that may be offered around an airport. "Panatropolis is the
perfect complement to strengthen the Tocumen International Airport as
the regional logistic hub serving global companies and corporations."
Panatropolis is located in a plot of land of 850 ha, near the Tocumen
International Airport. It has an estimated infrastructure investment of
400 million dollars. Likewise, it is believed that this platform will bring
investments from national and international companies for about 6,500
million dollars. The Panatropolis business plan envisages to develop
business, logistics, commercial, residential and entertainment areas, a
convention center, schools, hotels and casinos among others.
FABREGA | MOLINO | MULINO
PANAMA TODAY
A new special system for export processing zones has been
approved
On 1rst December the Cabinet approved a bill setting up a comprehensive
and simplified special system for the establishment and operation of free
zones.
The bill on free zones updates the Export Processing Zones Act and put
these zones in harmony with the new global and regional market conditions,
so as to be able to effectively compete attracting direct foreign investment in
the region.
The new system wishes to adjust the national legislation to the requirements
of the World Trade Organization (WTO), along with widening the possibility
of new investments being established in the country, focusing in companies
with a state of the arts technology, high education centers, research centers,
logistics companies and environmental services.
Source: Panama Economy Insight, December 2010.
Works of Juan Pablo Fabrega in the OAS
Following an invitation of the Organization of American States (OAS),
Mr.Juan Pablo Fabrega handed in his legal works to the Columbus
Memorial Library, in Washington, D.C. Those legal works were: "The
Rights of Shareholders and the Status of the Minority within the Panamanian
Corporations" winner of the "2007 Best Book Award" by the Inter-American
Federation of Lawyers (FIA per its Spanish acronym), "Treaty on the Law of
Corporations, commented article by article" awarded a second prize of the
2008 Book Award, also by the FIA; its English translation and "The Panama
Limited Liability Companies Law, commented article by article" and
published in 2010.
This consignment preceded the presentation of his first book, "One hundred
years of Relations, the Republic of Panama and the Oriental Republic of
Uruguay", storing up a great many data concerning both sister countries
within the framework of international community.
Auctions for $12 million
The Ministry of Economy and Finance (MEF per its Spanish acronym) will
auction properties amounting to 12.5 million dollars during this year first
trimester.
Auctions will be carried out through the Reverted Assets Unit and to start
with the Ministry has scheduled an auction of two residential plots of land
located in Margarita, province of Colon valued in 122 thousand 342 dollars.
Most of the auctions are scheduled in February, eight in total for 11.6 million
while in March six residential plots of land will be auctioned for 845 thousand
dollars. MEF informed through the Communications Directorate that a
building valued in 1.2 million dollars will be auctioned.
Source: La Estrella de Panama, 5th January 2011.
FABREGA | MOLINO | MULINO
PANAMA TODAY
Regulations on Shared Banking are updated
A new Agreement of the Superintendency of Banks of Panama allows banks of a same economic group to share
offices indefinitely. It is Agreement 7-2010, approved by the Board of Directors of this regulatory entity by which
the regulations on Shared Banking are updated.
The authorities stated the need and convenience to modify the criterion related with the authorization of two or
more banks established in Panama, belonging to a same economic group to share offices and/or all or part of their
personnel.
According to this new regulation, in no case the shared administration may be extended to areas and personnel
dealing with the public (front office) but the client will be allowed to clearly recognize anytime with which bank
he/she carries out his/her operations.
Such agreement repealed the 7-2002 agreement which established that exceptionally and for a determinate period
of time, the Superintendency of Banks would grant such authorization, only in case of merger of two banking
institutions, voluntary liquidation and in other exceptional cases cited by the bank.
Source: Superintendency of Banks of Panama.
The Exchange of instruments of ratification of the treaty
between Panama and Brazil on Mutual Legal
Assistance in criminal matters in order for both
countries to render legal assistance, investigate such
crimes as kidnapping and allow the repatriation of those
citizens to be summoned in their country of origin, took
place on 28th December 2010; therefore coming into
effect. This treaty was signed by both countries on
10th August 2007.
A Treaty on Mutual Legal Assistance
in Criminal Matters between Panama
and Brazil comes into effect
2011: Panama and the OECD
At the beginning of 2011 Panama wishes to be out of the OECD grey list of tax havens after having negotiated 12
agreements with various countries.
The Vice minister of Economy, Frank De Lima informed that the Panamanian Ministry of Foreign Affairs is in
communication with Belgium, France and Italy to set up the signature date of bilateral agreements to avoid double
taxation.
De Lima explained, "in January we are planning to sign two of them (avoid double taxation) and after their
signature, during the next OECD update, we hope to be out" from the OECD gray list.
Panama had already signed agreements with Mexico, Spain, Portugal, The Netherlands, Luxembourg, Qatar,
Singapore, South Korea, Barbados and United States of America, while are still pending the signature of
agreements with Italy, Belgium, France and Ireland.
As for United States and unlike other countries which are focused on avoiding double taxation, the agreement
signed with United States concerns the exchange of information on US citizens.
This negotiation work will carry on with Israel and the Czech Republic in March and with the United Arab Emirates
and Hungary in July stated the Vice minister.
Source: Notimex, Saturday 01 January 2011
www.fmm.com.pa