President Otto Perez has said that although they have ruled out the option of buying fighter jets from Brazil they will carry on with the process to acquire three radars and a control center.
The government has withdrawn from the purchase of 6 Super Tucano aircraft because of an overvaluation of $18 million, however, "we are looking at how we can save the purchase of radars and a control center," said Perez.
The BBVA Foundation and AMPYME have agree to the first private-public partnership for microfinancers in Panama.
The Microfinance Foundation of the Spanish bank BBVA has teamed up with the Authority for Micro, Small and Medium Enterprises in Panama to promote the use of financial products from these companies.
The purpose of the alliance is to bring these products to companies that usually have no access to banking services.
Representatives from chambers of commerce and from the Monetary Board have rejected contracts for 2 loans for $166 million for the purchase of aircraft.
Applications for loans of $133 million to the National Bank of Economic and Social Development of Brazil (BNDES) for the purchase of 6 Embraer aircraft and $33 million for the purchase of radars with Banco Bilbao Vizcaya Argentaria (BBVA) of Spain are intended to finance a project submitted by the Ministry of Defense.
Spanish BBVA forecast Panama's economy to grow by 6% in 2010 and 6.3% in 2011.
These new projections above rectify others which estimated 4.1% for 2010 and 5.2% for 2011.
"The numbers are close to the Panamanian government estimates which estimated growth for 2010 of 7%, well above the 5% estimated earlier this year," reports Prensa.com on an article.
The Inter-American Investment Corporation (IIC) has authorized a credit line to BBVA Panamá with the aim of giving SMEs access to finance.
The credit line seeks to make funds available to small and medium sized Panamanian companies, to help cover their operating costs and includes finance for working capital and revolving credit lines. This is the IIC’s second operation with BBVA Panamá.
The Panamanian bank will in turn lend the funds to companies in need of expanding.
Enrique García, executive president of the Andean Development Corporation (CAF), stated that “operations such as this show the role that CAF plays in Latin America, strengthening those institutions which foster external trade, working capital and investment in low risk, high value-added sectors”.
BBVAP and IDB signed documents for a $15 million loan to provide BBVAP with long-term funding to support its lending to small and medium-sized enterprises.
The IDB loan will allow BBVAP to significantly expand its lending to SMEs, a strategic sector for economic growth and job creation in Panama. Commercial banks can play a key role in expanding access to financial services for SMEs, leading to more inclusive financial systems in Latin America, noted IDB Financial Markets Division Chief Daniela Carrera-Marquis.
The bank announced it will invest 1% of its net earnings of 2009 in social responsibility projects.
Alberto Conde, CEO of the Panamanian branch, explained their top objectives will be education, football and culture, and that they will invest around $407.000.
He also told newspaper La Estrella that “this year, over 1.000 kids from around the country have benefited from our scholarships”.
The Inter-American Development Bank approved a $15 million loan to provide Banco Bilbao Vizcaya Argentaria (Panama), S.A. (BBVAP) with long-term funding to support its lending to small and medium-sized enterprises.
Additionally, the IDB helped catalyze a parallel US$25 million loan from the German development lender Deutsche Investitions und Entwicklungsgesellschaft mbH (DEG) to BBVAP, a unit of the Spanish Grupo BBVA.
The bank's activity in the local market will be limited to commercial banking, focused on the resident population.
Two factors motivated this decision by the bank: the country's qualification as a "tax haven" by the Organisation for Economic Co-operation and Development (OECD), and its presence in the "black list" of the Spanish government.
Alberto Conde, BBVA's Panama General Manager, told Laestrella.com.pa that "...the measure was decided with their head offices in Spain... 'This removes opportunities in the non-resident and the offshore banking sectors'...".
The stock market in Panama is the source of fresh funds while the rest of the financial system keeps funds restricted.
Issuances recorded by the National Securities Commission (CONAVAL) during the first quarter of 2009 totaled $305 million, while those in process total $447 million.
Even banks are trying to capture the public's money in this manner.
Bancredito signed a deal with the BBVA Foundation to offer microcredit in Costa Rica
The agreement will allow Bancredit to take advantage of the BBVA Foundation's experience in the development and implemenation of financial products and services for small companies.
The Microfinance fundation, BBVA, is an entity created by the BBVA Group in accordance with its strategy of corperate responsibility.
español
5245
