Frank De Lima, who until now has been the vice minister, will replace retiring Alberto Vallarino, and will continue with the current economic policy, according to President Martinelli.
The breakdown of the alliance between the Panamanian Party of Vice President Juan Carlos Varela and President Martinelli’s Democratic Change Party, caused the resignation of Economy and Finance Minister Alberto Vallarino and others in prominent government positions.
The government may not use more than 20% of its investment budget for projects undertaken under this modality.
When projects are implemented using the turnkey model, contractors are responsible for financing, which the state then pays for upon completion of the work. The current limit for this type of contracting was introduced at the request of the rating agencies.
The resignation of the Minister of Economy and Finance has caused global concern about the stability of the country's economic direction.
The recent rupture of the alliance between the ruling Democratic Change party and the Panameñista party following the dismissal as Foreign Minister of Juan Carlos Varela, Vice President and President of the Panamanian Party, sparked a series of immediate resignations, including that of the Minister of Economy and Finance, Alberto Vallarino.
The Chamber of Commerce, Industries and Agriculture has again called for consideration of the effects that partisan conflict could have on the country's economic activity.
The rupture of the alliance between Martinelli’s Democratic Change party and the Panamanian Party, caused by the dismissal as Foreign Minister of Juan Carlos Varela , Vice President of the Republic and President of the Panamanian Party, sparked a series of immediate resignations of other main figures in the administration. Among those resigning are the Minister of Finance, Alberto Vallarino, whose departure from government may create uncertainty about the continuation of the country’s current economic policy.
Both countries have pledged to contribute $210 million each for the completion of the project that will allow the sale of surplus electricity from Colombia to Central America.
Carlos Rodado Noriega, Colambian Minister of Mines and Energy, said at a news conference that an agreement has been signed with the Panamanian Minister of Finance, Alberto Vallarino, ISA from Colombia and the company Etesa from Panama.
The new center will house facilities for Panama’s telecommunications, meteorological and aeronautical information.
An additional loan of $8 million has been granted by the National Economic Council (CENA) to the Civil Aviation Authority for starting the construction of the new headquarters for the Center for Air Traffic Control and Radar Approach Area, which is currently located where the Ciudad Gubernamental (Government City) will be built, said the Minister of Economy and Finance, Alberto Vallarino.
The National Highway Company (ENA in Spanish) has issued certificates on the stock exchange in order to raise funds for the South Corridor for the company ICA.
Using debt bonds, with one series placed on the international market and another in the local market, the ENA was able to raise $225 million in the local market at a rate of 5.25% and $170 million in the international market at 5.75%.
Those not providing them may be fined, as will consumers, who must insist on them.
As part of measures taken to reduce tax evasion, the government has recently amended a law of March 8, 2010, through which businesses are obligated to issue receipts and deliver them to buyers.
In turn, purchasers must take possession of them in order to avoid being punished by fines ranging from $1 up to 7% of the invoiced amount.
Companies whose distribution operations or sales are made through sales agents with assigned routes are excluded.
This exemption is valid until portable printers become available. The Internal Revenue Service will set the timeframe for their implementation. "However, the proviso is that the use of such equipment will not be required if the total daily turnover of each merchant is less than $300.
The fund will collect the additional revenue generated by the Panama Canal when the new locks come into operation.
Alberto Vallarino, Minister of Economy and Finance, explained that it will function as a stabilization fund, ensuring that budgets are balanced and without deficit, adding that its management will be totally independent from the government.
By 2014 national debt will have grown by 35%, an increase that the Martinelli administration is justifying with growth projections of the successful Panamanian economy.
Economists and political opposition parties are recommending that the government be more conservative in its assessment of the projected GDP growth.
Roberto González Jiménez in his article in Prensa.com, reported that " The current administration’s projected increase in national debt of 35% - which would make the balance of debt at the end of 2014 $14,852 million – has been questioned by political leaders and led to calls to handle projections more cautiously by economists. The government, however, is defending the financial policy.
The Ministry of Economy will present the state budget for fiscal year 2012 amounting to $14,000 million.
The budget for 2012 is $1,000 million more than in 2011 and $3,425 million more than the year before that, 2010.
Minister Alberto Vallarino attributed the historic budget "to economic growth and the millionaire income generated by tax reforms that have given the country 'investment capacity.’"
The Ministry of Economy is seeking alliances with private companies to build the project via a public tender.
Minister Alberto Vallarino told the press, "We hope to get interest from the private sector in this partnership with the government. We are probably going to choose the company that proposes the best share offer and value per square meter for the public entities who will buy the tower. "
A residential project in the Bay of Panama which will have 16 towers, some of up to 30 stories, a hotel, marinas, convention center and retail space, is generating internal dispute in Martinelli’s government.
The project was presented by a group of private businessmen (Maritime City) under the name Amador City Marina which will be built on two peninsulas with 36 hectares of the sea bed being filled on the Amador Causeway in Panama Bay.
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