The business sector recognizes the need to implement the standards required to be removed from the gray list, but is calling for flexibility so that businesses are not harmed.
Without calling into question the need for the country to implement and enforce the rules on transparency, financial sector companies are insisting that authorities provide them with greater flexibility in order to minimize the impact the changes will have on their businesses.
Panamanian banks were prudent and dodged the crisis successfully; they are now full of cash, and eager to lend money.
With close to $13 billion in liquid assets, banks in Panama are getting ready to finance the Government’s large infrastructure projects, which require $2.4 billion in 2010 and $3.2 billion in 2011. In the 5 years of Martinelli’s government, the State is expected to invest around $15.6 billion.
The effective income tax rate paid by banks (known as ISR in Spanish), could increase to somewhere between 14% and 15%.
Eduardo Lee, who represents the banking establishment in this negotiation with the State, submitted a proposal in which banks will have to distribute costs proportionally to how much they earn from their domestic and foreign operations.
Panamanian banks will not use Financial Stimulus Program funds due to their terms and conditions.
The Banking Association of Panama, through its president, Mosi Cohen, told the new government’s transition team that banks have not and will not use Financial Stimulus Program (PEF) funds unless there is a change in the terms and conditions.
Journalist Edith Castillo Duarte wrote in a Prensa.com article: "ABP (Panamanian Banking Association) seeks conditions that are more flexible and consistent with our reality in order to maximize these resources and [Cohen] recommended for the new government’s team not to commit to using the funds from the Inter-American Development Bank (IDB) because they would have a very high cost for the country under the conditions that these funds have been presented to us.”
Its promoters claim that the decline in the pace of sales is not too much and that they have already sold 80% of the 1,010-unit project.
Its opening is planned for August 2010. To date, some 90 thousand square meters have been constructed, 35% of the 265 thousand in total.
Commercial director Rosella Violi informed Prensa.com: "The building has allocated 80% of its sales and the customers have been from United States, Venezuela, Colombia and Europe for the most part."
The Panama Bank Association (ABP) recommended that the Government start, as soon as possible, a program to reactivate the economy via the banks.
Prensa.com reports: "This means that the State can drive the economy via local banks by granting loans to sectors that will generate employment and wealth for the country," said the new president of the ABP, Moises Cohen, in his inauguration speech.