Isthmian Update
Some of the news in Panama
Panama and the U.S. mortgage market
The crisis shaking the US mortgage market which has caused
losses of billions of dollars to banks in North America and Europe will
not affect the Panamanian banking system directly, but the Banking Association
of Panama (ABN) is following the situation with great caution.
Panama could even benefit from the situation, said the former banker
and presidential candidate of the opposition Panameñista Party,
Alberto Vallarino. He said that the United States faces the worst loss
of money in the history of the New York Stock Exchange, but "if
there is a drop in interest rates at the international level it can
benefit the accumulation of debt for the Canal and refinancing new loans
for the central government.
Work permits
Approximately 6,000 work permits were issued during the past
year to foreigners who have established residence in Panama. The figures
were released by the Ministry of Labor, which indicates Panamanian law
allows 10% of employees of companies to be foreigners.
Declare your money
An official report of the Customs Department indicates that
over the past year the institution has arrested 43 people who did not
declare sums over $10,000 in their possession upon entering the country.
They seized US$5,228,000 which is one million dollars more than that
seized in 2006. The report cites, in addition, that in 2007, smuggled
objects, were seized valued at US$210,255. This included cigarettes
worth US$64,000
Noriega to France
After a judge denied a habeas corpus to the American lawyers
of former general Manuel Antonio Noriega to stop his extradition to
France, the First Vice-president and Minister of Foreign Affairs, Samuel
Lewis Navarro, said that Panama will continue efforts to ensure that
the former Panamanian military man completes his jail sentences in Panama.
Popular Free Zone
The Colon Free Zone received 14,071 tourists in the final
month of last year of which Venezuelans numbered 6,687 followed by Colombians
with 2,249. The foreign visitors carried out commercial transactions
with businesses, learned about the functioning of the zone and explored
business opportunities.
Economic activity in the Colon Free Zone at the close of 2007 generated
foreign exchange to the order of US$16,159,000,000 representing growth
of 12.6% over the same period of 2006 when it reached a grand total
of
US$14,357,000,000 according to the economic report released by the Users’
Association (AU). However, the month of December showed a decrease of
0.2%. In this month trade movements were recorded for US$1,019 million
compared to US$1,021 million registered in 2006.
Triplets drown
Triplets of only a year and four months of age drowned in
the swimming pool of their home, in the Paradise sector of Las Cumbres.
The newspaper "El Siglo" reported that the mother, Naimana
Francines, left the children eating and went to bathe. The maid neglected
to watch them and left the three children playing with the dog, until
they fell into the pool. The father of the children, Piero Terranera,
works in the National Program of the UN Food and Agricultural Organiza-tion
and was outside of the country at the time of the accident.
Drugs galore
Drug trafficking continues on the Panamanian coast. The National
Police Force captured five Panamanians and two Colombians in Los Santos
for drug possession. The operation called "Alta Mar" (High
Seas) resulted in the seizure of 655 packets with suspected cocaine
on a boat, which was "acting in a suspicious manner" in the
area of Punta Mala.
Chiriqui has become the scene of the biggest drug seizures in recent
weeks, since it began operation "Ley Patriotica". The authorities
managed to seize 1,000 kilos of cocaine at a checkpoint in Boqueron.
According to the First Drug Prosecutor, Jose Abel Almengor, it is anticipated
that the cargo could be worth US$2 billion.
Altogether in 2007, security groups in Panama managed to seize 56.40
tons of drugs destined to organized crime groups that operate in Panama
and in other countries such as Mexico, the United States and Europe.
This figure is alarming because in 2006 only 10,034.4 kilograms of drugs
were confiscated, which verifies that Panama has become the favored
route for drug trafficking because of its geographical position, says
the newspaper "El Siglo".
Meanwhile The Government of Panama supports the fight against drugs
being made by the president of Mexico, Felipe Calderon. Air traffic
restrictions will be imposed by the Mexican government from March in
an effort to curb drug trafficking affecting several countries and aimed
at the United States market.
Cruise business
Some 300,000 cruise ship passengers will disembark in Panama
in the 2007-2008 season. Augusto Terracina, general manager of Adventures
2000 , a Panamanian tourism operator, said that they expect 135 cruise
ships at the rate of one each 14 days. Sources of the private sector
calculate that almost 41 percent of the increase of visitors to Panama
between 1999 and 2006 are cruise ship passengers.
Dial 911 soon?
Act 44 of 2007, which established the Emergency 911 Dialing
System has not yet been regulated, the Board has not yet been created
and the service is not yet operational, but the government has required
the companies providing telephone services, transmission data and Internet
to make the first payment this month with the new rate of 1% applied
to the bills of some customers. The govenment hopes to raise US$5.6
billion this year by withholding this rate, envisaged in Act 44, announced
Antonio Dominguez, project coordinator of the 911 system in the Ministry
of Government and Justice.
Judge and the constitution
The criminal division judge of the Supreme Court, Jerome Mejia,
will have to face justice for alleged violation of the National Constitution,
as alleged by lawyer Guillermo Cochez. The complaint is that Judge Mejia
violated Article 212 of the Constitution, which prevents him from working
as a lawyer and engaging in commercial activities.
Old behaviour
Nobody in their right mind would swim in Panama Bay. It was
no wonder, then that the rescue alarms of the National System of Civil
Protection (Sinaproc) were activated at 10:45 p.m. on a recent Sunday
night when they received a call that a woman had been thrown into the
sea on Avenida Balboa close to the Miramar Intercontinental Hotel. It
concerned Susan Schade, a 27-year-old German, who had arrived in Panama
alone that same day and stayed in the Hotel Covadonga, in Calidonia,
it was confirmed by the rescue leader of Sinaproc, Heriberto Chavez.
She apparently was just taking a dip. She later flew to Medellin, Colombia
and upon alighting from the plane, sprinted down the run way. She was
placed in the custody of the embassy of her country.
Two more cell companies
The companies Digicel Panamá, S.A. of Ireland; Telemóvil
El Salvador, S.A. a subsidiary of Milicom International Cellular (Luxemburg)
and Claro Panamá, S.A. a subsidiary of Claro de América
Móvil (owned by the Mexican businessman Carlos Slim), were all
qualified by the Authority of Public Services (ASEP) to participate
in the public bidding for two cellular telephone concessions that will
be given this year.
Transparency
The attention of various state institutions was called by
the Ombudsman, Ricardo Vargas, as many have failed to submit documentation
on financial information to be published in the Transparency files of
the institutions. Vargas requested this information in mid-November
last year, but so far numerous institutions have not complied with this
requirement.
Taiwan donates marine lab
Taiwan gave the Panamanian government US$6 million to fund
several projects including a marine laboratory to investigate and promote
the breeding of endagered species. The aquaculture project consists
of replacing a modest technical facility at the Vacamonte fishing port,
with a Pacific Mariculture Laboratory. The laboratory will investigate
the breeding and restocking of fish.
Amador landfill
The businessman Jean Figali, president of Grupo F. Internacional,
has taken advantage of the protection guarantees in the Supreme Court
to halt any action against his landfill on the Amador Causeway to build
a marina. Apparently the National Environmental Authority (Anam), which
alleged that the project failed to comply with the provisions of its
environmental impact study, cannot proceed against the project which
envisages taking more than seven hectares from the sea.
Balboa Port expands
Four post panamax cranes have left China for the Port of Balboa.
The cranes are part of the Phase 4 expansion project of Panama Ports
Company costing more than US$300 million. After they are installed,
the Port of Balboa will have a total of 18 container cranes, becoming
the port with most cranes in Panama and one of the largest in Latin
America.
Swedish investment
Panama and Sweden signed an agreement in Panama City on the
promotion and reciprocal protection of investments. The agreement was
signed by the Panamanian Vice-minister of Foreign Affairs, Ricardo Duran,
and the ambassador of Sweden, Lena Nordstrom.
Is Baru still asleep?
Scientists from the University of Pennsylvania and staff of
the Institute of Geosciencies of Panama Barú carried our measurements
to understand the behaviour of the Fault Zone of the country. Eduardo
Camacho, director of the Institute of Geosciences, said that these scientists
conducted measure-ments in Puerto Armuelles and Punta Burica for 10
days.
Studies of Volcan Baru have been under way for nine months by Secretariat
of National Science and Technology (SENACYT) and the US Geographic Service
(USGS). Local experts say that there is no need to worry about the volcanic
activity that is recorded in the depths of the Chiriqui mountain.
The economy -
the good news
Panama has entered a "virtuous circle" that can lead to a
decade of rapid and "well managed" growth, which previously
took 30 years to achieve, said Luis Navarro of the law firm of Indesa.
He added that the rates of growth that the country has witnessed in
recent years triple the historical rates.
The total revenue of the central government between January and November
2007 grew by 9.0% and current revenue by 13.0%, while tax revenues and
direct taxes rose 19.6%. Income taxes grew 21.4% and property and heritage
taxes by 14.6%, according to data from the Comptroller’s Office.
Meanwhile, indirect taxes increased 25.7% with variations of the value
added ITBMS by 23.6% and import duties by 33.2%
Agricultural and fisheries exports, in addition to the influx of visitors
to the country and Canal revenues, recorded an increase between January
and November 2007, compared with the same period last year.
Agricultural production maintained a growth based on fruit such as
bananas, watermelons, melons and pineapple, achieving income to the
order of US$317.8 million. The Union of Industrialists of Panama maintains
that expectations of growth for these areas "are good".
The economy -
the downside
Inflation, which reached 6 percent during 2007, will be controlled
only with the decisive intervention of the State in the domestic market,
says the researcher of the Institute of National Studies (IDEN), Miguel
Ramos. "It is clear that in Panama there is an economic growth
of more than 9 percent, but this process is also unleashing an "explosion"
and is rocketing up the prices of staple foods", he stressed.
In the last month of 2007 inflation, as measured by the Consumer Price
Index (CPI), took another step up. With an increase of 0.4% over the
previous month, the CPI for December pushed the cumulative increase
since December 2006 to 6.4% according to data from the Comptroller’s
Office. This is the largest increase in 17 years. The CPI increased
by an annual average of 4.2%, well above the historical average, due
to dearer food (6.8%), transport (6.3%) and housing (4.6%). The variation
of food is also the highest, reaching 6.6%
Consumer organizations denounced an increase of prices of the basic
family food basket and called on the government to brake the abuses
and speculation in commercial activities. Some 50 products form part
of the basic family food basket calculated by official agencies on the
base of the average consumption of a family of four at a cost of about
US$250.23 |
Hide/ Ocultar
IPAT Marketing
Director Kathy de Guardia, says that the four commercials now in circulation
are in both English and Spanish and range from 30 to 60 seconds each.
She says there are two more to be filmed. The campaign will hit hard
between January and April, and then pick up again in October. $1.8 million
of the overall budget is being used to air the ads.
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