The bill received final passage on its third reading in the National Assembly with 41 votes in favor, 19 against and zero abstentions.
Friday, June 1, 2012
A statement from the National Assembly reads:
Panama Savings goes to Executive for approval
With the enactment by the Executive Body, Bill number 483, which creates the Panama Savings Fund (PSF), will become law of the Republic, after it was approved with 41 votes in favor, 19 against and zero abstentions, on the third reading by the full National Assembly of ministers.
The project, which was approved with most of its provisions, requires that Banco Nacional de Panama (BNP), as trustee, will be responsible for managing the assets of the PSF within a framework established in the Annual Investment Plan approved by the Board.
Asset management companies to invest in PSF
Similarly, the Technical Secretariat, under instructions from the Board, may order the trustee to contract one or more management companies to invest part of the assets of PSF as well as contract companies to take custody and care of the assets and shares of the Fund.
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The Panamanian Chamber of Commerce supports the creation of a sovereign fund and recommends separate discussion of matters relating to limiting the fiscal deficit.
A statement from the Chamber of Commerce, Industries and Agriculture in Panama (CCIAP) reads:
The Chamber of Commerce, Industries and Agriculture of Panama, agrees with the establishment of a Savings Fund for Panama and recommends that the National Assembly have a separate debate over matters relating to the amendment to limit the fiscal deficit, which was incorporated into the bill creating the Fund.
The Fondo de Ahorro de Panamá (Panama Savings Fund) aims to be a mechanism for economic stabilization and savings for natural disasters or economic crises.
"The Cabinet has approved a bill proposing the creation of a sovereign fund called the ‘Fondo de Ahorro de Panamá ‘(FAP), which according to a statement from the presidency will have two parallel objectives: National savings for future generations and economic stabilization in case of predetermined situations such as natural disasters or economic crises," reported Capital.com.pa.
According to government projections, Panama's future sovereign fund will have $12.5 billion in assets by 2025.
This fund will be used to combat natural disasters or adverse economic circumstances.
"Every year, of the contributions generated by the Canal to the State, a portion will go to the National Treasury - the equivalent of 3% of gross domestic product (GDP) - and anything in excess of that amount will be saved" in the sovereign fund, explained Prensa.com.
The fund, which will receive the additional revenue generated by the Panama Canal when the new locks come into operation, will be the Government’s main task next year.
The Minister of Economy and Finance in Panama, Frank De Lima, in a meeting with the press, said that the priority for his department will be to create a draft bill to be debated in the political and social arena before being sent to the National Assembly.
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