“Ambassador Jim” chooses Panama as his second home

By: Ken Jones

When a diplomat who spent 29 years of his life in different countries chooses to retire in Panamá, this has to tell you something. When British Ambassador to Panama, His Excellency James Ian Malcolm OBE (Officer of the Order of the British EmpireI awarded by HM Queen Elizabeth in 1994), vacated the embassy residence on Ave. Balboa last year after five years in the post he bought an apartment in San Felipe and joined the growing population of expats who have made a second home in Panama.

"I´m just Jim Malcolm now, and it feels great", he told me. In fact he has been "Ambassador Jim" throughout his tenure, with a reputation for down-to-earth charm and an informal style, including traveling around town on a motorcycle, which endeared him to Panamanians and the international community.

As ambassador, he became a real friend of Panama in working to change the country´s image, sometimes perceived internationally in terms of sleaze, "flag of convenience" and corruption. "My message was that this is a first world environment, a progressive democracy and a beautiful country" said Jim.

His work did not go unnoticed. After his retirement the Panamanian Government awarded him the order of Vasco Núñez de Balboa, Grand Cruz, never before conferred on a British Ambassador in Panama.

From a working class Scottish environment, the young Jim Malcolm won a bursary to the Royal High School in Edinburgh and upon graduating, answered an advertisement for a post in the Foreign Office. He went down to London, his first visit to the capital, and got the job with what must have seemed to him as the grand title of Registry Clerk and Communications Officer.

The year was 1965 and he had embarked on a 41-year career which, together with his wife Sheila (they were married in 1967) sent him on an odessy around the world.

When he was offered the ambassadorship to Panamá in 2002, he was surprised to discover that it was designated by London as a "hardship" post, a stigma doubtless earned during the Noriega years and in the ponderous manner of the bureaucracy, never updated. Jim soon set the record straight and informed the Foreign Office that Panamá was at the start of an economic surge which would rival Singapore.

Former British Ambassador James Malcolm and his wife Sheila pose
in the study of their new home in Casco Viejo.

Events proved him correct, and in any case the importance of Panamá is manifested in the fact that the United Kingdom is by far the largest foreign investor in the Republic, with companies like London Regional Properties, Cable and Wireless and HSBC in the most visible positions and a host of less obvious UK economic participation including Bi Water (which supplies through IDAAN 40 percent of Panama City´s water and all of the water in Colón), and the City of London which supplies a large majority of the Canal´s shipping and insurance business. JCB, a UK heavy equipment company, is also becoming a big player since the Embassy encouraged them to move their regional base from México to Panamá.

The Malcolms spent 29 years in eight foreign posts, raising their family of two children in sometimes difficult circumstances, from car bomb attacks in Syria to the privations of life in war-torn Angola.

His jobs were many and varied. In Brussels he encouraged NATO allies to purchase British defense equipment. He was a commercial attaché in Kenya and communications officer in Rangoon. Back in London he spent three-and-a-half years in a counter-terrorism policy-making unit and attended the London School of Economics prior to an assignment as a special economic adviser in Jakarta.

Also in London he was head of the BBC World Service Department, the radio station of which is funded by the Foreign Office.

His last posting before coming to Panama was as Deputy High Commissioner in Jamaica, an important post because of the historical connections as well as drug related crime which has many repercussions on the streets of London—reason why the High Commission in Kingston has well over 100 British staff working closely with the Jamaican authorities.

He has always been interested in the history of his host countries, and being a Scot, became fascinated by the ill-fated attempts by his countrymen to set up a colony in the Darién in 1698. He made several visits to the site of the "Scottish Colony", the latest with achaeologist Prof. Mark Horton of the University of Bristol, aboard a ship loaned by the Panamá Maritime Service. They recovered interesting artifacts now at the Reina Torres de Araúz Museum.

Jim also brought to Panamá in 2005 an exhibition of documents and relics of the colony compiled by the National Archives and the National Library of Scotland and first mounted in Edinburgh in 1999 with the sponsorship of the Royal Bank of Scotland.

"Retirement" is not a word Jim recognizes. But in his "life after the Foreign Office", as perhaps it should be expressed, he intends to stay busy with business consultancy and his passion for photography.

Marcial Vargas, backhoe artist

Creator of lakes and waterfalls

By David Dell

I first met sixty-four-year-old Marcial Vargas when we worked together constructing a decorative waterfall and lake. At one point, I wanted a large rock moved some fifty yards to a point next to an artificial pond – but the rock was huge, too big to be lifted by the retro. Marcial wasn’t fazed. He gingerly rolled the rock (the size of Volkswagen Beetle) over and over until it finally rested in the chosen position.

Retros, or backhoes, are to be seen all over Panama, from farms to building sites. They are the workhorses of the construction and agricultural industry. Ninety per cent of the time their tasks are mundane and repetitive. They load, they unload or just move soil. But when placed in the hands of a true mechanical maestro, they become like a paint brush in an artists hand.

Marcial Vargas – retro artist.

Marcial’s reputation amongst the people of Volcan is becoming legendary. He is credited with constructing nearly thirty lakes and waterfalls in the area, things of beauty which will be a joy forever

Locals I have talked to speak in awe of his capabilities, and their deep respect for his honesty, cheerfulness and heartfelt desire to perform the tasks to the specifications of the client.

Marcial starts his day around 5:30 a.m. with a two kilometer jog around the quiet and deserted streets of Volcan. Then he is off to work armed with his flask of decaffeinated coffee, cheese sandwiches and wearing his trade mark smile. He is quiet and unassuming. I have never seen a look of frustration or anger on his face, even when "the gringo" wants him to move the same rock for the second or third time. If he is left to his own creative desires however, his talents are obvious.

There has been many a day when I have driven Marcial back to Volcan from a work location. With both of us tired, and invariably soaked to the skin from the constant rain, we leave a part of Panama that has become even more beautiful, more awe-inspiring. I may have been the creative force, but the paint brush was in the hands of a mechanical wonder-worker, an unsung Panamanian artist, Marcial Vargas, retro operator extraordinaire.

How to get a mortage loan in Panama

By Steven Rich

Mortgages do not come easy for foreigners purchasing real estate in Panama. Panamanian banks welcome foreigners applying for mortgages yet they require a lot of information and documents before granting a loan.

The easiest properties for which to acquire financing are titled with improvements, existing infrastructure and located in either an urban or a developing area. If you are trying to buy raw land with little or no infrastructure, no improvements, and not in a developing area, forget it. Chances are the bank will decline your loan unless you have an established credit history with the bank or substantial assets on deposit with the financing institution.

Down payments are usually around 30% of the purchase price (or appraised value). Terms and rates are very similar to the United States and Canada. However, the application process differs greatly.

In North America, financing is all about your credit history and ability to pay. In Panama, it is all about your ability to pay and loan-to-value ratio. Panamanian banks require that you provide lots of documentation proving your income and the true value of the property you wish to buy. Since the banks do not know you as a foreign applicant, you should expect a long, tedious process requiring lots of documentation and organization.

Be Prepared is the first rule when applying for a mortgage in Panama. Here is a list of typical documents required by Panamanian banks for a mortgage:

• Complete, signed bank mortgage application & agreements
• Photocopy of your entire Passport (Certified copy if not present at bank)
• Photocopy of one additional photo ID (like a Driver’s License)
• Recent Utility Bill (showing your name and physical address)
• Credit Report (from companies like Experian, Equifax, or Transunion)
• Curriculum Vitae (your education & work history)
• Two (2) original bank reference letters
• Two (2) original professional or commercial reference letters
• Photocopy of bank statements for the last 12 to 24 months
• Last two (2) years income tax returns (or audited financial statements)
• Letter explaining your income sources & reason for purchasing the property
• Proof of Immigration status (if in Panama longer than tourist visa period)
• Appraisal of the property (from a bank-approved appraiser)
• Purchase contract and down-payment receipt
• Title deed of the property filed with Public Registry before funds released

Most banks require all documents originating outside of Panama be “authenticated” either through a Panamanian consulate nearest you, or by “apostil” which is an internationally recognized form of notary/certified authentication.

Self-Employed applicants are also required to provide:

• Company Information (name, phone numbers, physical address, web URL)
• When and where company was created
• Type of business the company engages in and type of market
• Financial statements for past two years (audited)
• Reference letters from two companies you did business with
• Bank reference letters for the company (originals from two banks)

Know Your Customer is the battle cry of banks worldwide, which is why you need the reference letters vouching for your good character.

Life insurance is also required with the bank being the beneficiary for 100% of the loan amount. Since the policy is based on your life expectancy, it is more expensive the older you are.

A fire insurance policy on the structures for at least 80% of the loan amount is required.

Be patient. It takes time to meet with bankers, complete applications, translate and review agreements, organize the documents, and seek an attorney’s opinion. In addition, you may end up visiting several banks, as some may not provide mortgages in the region you wish to purchase.

Steve Rich is Marketing Manager of Panama Offshore Legal Services.

Reader’s letter

Uncertainty over tourist visas

The Editor

Dear Sir,
Last month, your paper printed an article in which Ruben Blades, Minister of Tourism, stated emphatically that tourist visas are valid for 90 days, with a 90 day extension possible. He stated that people out to hurt Panama have started a rumor that the basic visa has been reduced to 30 days.

This month, your paper carries an article that the tourist visa has indeed been reduced to 30 days, with a 60-day extension possible.

Which is correct? Is your paper being duped by false Internet rumors, or is Mr. Blades not up to date on current laws regarding tourism?

Yours.
Richard Buckley

Editor’s Note

The law reducing the tourist visa from 90 to 30 days was part of a large emergency anti-crime bill which was passed by the National Assembly without debate on the same day it was presented. It caught everyone by surprise including Mr. Blades – and his staff.

The measure is being criticized strongly in tourism circles and especially by realtors who point out that a person buying property usually needs more than 30 days. They add that foreigners, especially if they speak no Spanish will be confused and frustrated by attempting to renew their visa at the immigration office.