Panama Draws Regional Cash
Panama is developing as a regional money center, drawing the majority of flow from politically unstable countries. Locals are also generating significant deposits.
by Andy Webb-Vidal
Panama may be barely an eighth of the size of Venezuela, but it
has a welcoming investment environment and bright economic
prospects. This contrasts markedly with the worsening business
and political climate in some parts of LatAm, making Panama a
magnet for cash fleeing for more stable havens.
Panamas Banking Superintendent, deposits from sources in
Venezuela, including banks, surged from the $811 million in
2006 to $1.32 billion at end of 2007, a hike of 63%. This is
partly driven by rising numbers of mostly wealthy Venezuelans
migrating to Panama.
Many people prefer Panama over the US for a number of
reasons, chief among them is the question of visas, says
Miguel Octavio, director of BBO Servicios Financieros, a
brokerage in Caracas. Culturally its more like
Venezuela, and of course Panama has the US dollar, so it has
received lots of attention...
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