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Panamanian Commerce and Industry Minister, Carmen Gisela Vergara, made several comments regarding Panama and the world financial crisis while attending a conference in Tokyo.

According to Ms. Vergara, The ongoing global financial crisis has had less of an impact in Panama than elsewhere. Panama, one of the biggest financial centers in Latin America, has suffered fewer losses in the worldwide financial crisis due to the liquidity of its banking system.

In addition, according to Ms. Vergara Panama’s banking system has become more stable in recent years with increased savings from both Panamanians and foreigners. In fact, there may be more foreign savings that have come to Panama after the start of the credit crisis in the United States. “Panama's economy is based on regional financial services, which is different from any other countries in Latin America and the Caribbean region,” Vergara added.

Vegara said that because much of Panama’s economy is dependent in one way or the other on the US economy it remains to be seen what all the effects will be.

The web site quotes Panama’s President Torrijos as saying that “his country's banking system was ready to face the global financial crisis. The extension project of the Panama Canal was provided with a loan of us$2.3 billion dollars, showing the confidence of the international community in his country.”

The country's banking system becomes even more stable with the growth of local and foreign savings after the crisis broke out in the United States. However, Vergara also noted that the impact of the financial downturn is not clear yet as the country's economy is largely dependent on the United States.

Panamanian President Martin Torrijos said earlier that his country's banking system was ready to face the global financial crisis. The extension project of the Panama Canal was provided with a loan of us$2.3 billion dollars, showing the confidence of the international community in his country.

Finally Vergara noted that, “Panama has no central bank. The absence of foreign exchange risks and foreign currency control, tax-free bank savings, the free flow of remittance and low interests on bank loans have made this Latin American country one of the most important financial centers for international banking and commerce in the region.”

Panama appears to be the place to weather the world’s current financial crisis. Panama remains a tropical paradise with housing prices lower then North America and Europe even with prices dropping in the USA. Panama’s economy is broad based and booming. Panama has just received assurances on loans for the Panama Canal Expansion. Panama’s local business community has solvent banks to look to for financing of needed projects, payroll, etc.

Investment in real estate in Panama remains a good deal. Investment in commercial real estate in Panama makes great business sense. With Panama’s small business community thriving all of those folks need office space, warehouses, and retail space. There are worse things in life than walking a white sandy beach in Panama and collecting rent checks while the rest of the world sorts out its economic mess.

If you are interested in residential or commercial real estate investments in Panama contact us as ABPanama. We have over 23 years experience managing real estate portfolios.