Why was this law created?
In the maritime world there are cities that, based on their geographic and economic conditions, are renowned as international maritime financial centers. Examples of these cities would be: New York, London, and Singapore.
Panama has a privileged geographical location in the region, and globally; Since 1970, Panama has become a financial center where multiple banks with local and international capital operate. In recent years the origin of the capital of several of its members has been regional; Panama has flexible regulations in terms of capital movements; Panama handles the U.S. dollar, the preferred currency for financing syndicated projects; Panama has the largest merchant marine fleet in the world, with close to 8200 ships registered under the Panamanian flag; and Together with the expanded Canal, its ports, auxiliary maritime services, and free zones, Panama is a global important maritime logistical hub with the potential for constant growth, and of attracting financial entities that wish to develop the opportunities these may provide. WHO WILL BE ABLE TO OFFER, STRUCTURE AND GRANT MARITIME FINANCING UNDER THIS NEW LAW?
Article 3 of Law 50 establishes that those allowed to perform this type of financial activity operations will be:
The banks of general, international or representative license; The companies that carry out operations destined to design, structure and develop the financial conditions for maritime credit and their guarantees and obtain the corresponding authorization and recognition; The financial companies regulated by Law 42 of 2001; The financial leasing companies regulated by Law 7 of 1990; Maritime financing entities; and Consortiums or "Joint Ventures" between the State of Panamanian and private entities. WHO WILL BE THE REGULATORS OF THESE ACTIVITIES?
Chapter VIII, articles 18 to 20 of Law 50, establish that the operations of this new activity will be governed by a governmental entity called the Certification and Supervisory Board of Maritime Financing Entities.
It is provided that the council will be composed of representative members from:
The Panama Canal Authority (ACP) The Panamanian Maritime Authority (AMP) The Ministry of Economy and Finance (MEF) The Ministry of Commerce and Industry (MICI) The Labor Ministry (MITRADEL) The National Migration Service (SNM); and The Financial Coordination Council Each representative member will be appointed for a period of 5...