A new bill has been proposed in the United States, which would give property buyers a free visa with every house purchased. The bill, which has been introduced to the US Senate this week, would let foreign investors live in the country if they spend $500,000 or more on American real estate. The scheme, suggested by New York and Utah Senators, is an inventive way to encourage immigration to the USA and invite new buyers into the property market.
This homeowner visa would be valid for three years, although there are some restrictions. It would not include citizenship, voting rights or a work visa, and property buyers would have to complete their transaction in cash, without a mortgage. The home would also have to be occupied for 180 days of the year, although spouses and children would be allowed to live in the US as well, so buyers wouldn’t have to relocate alone.
The bill follows a similar existing programme, which gives foreigners fast access to a green card if they invest over $500k in a US business and create new jobs in the economy. America is optimistic that these immigration proposals can help drive up demand in the housing market.
Foreign investors already account for about 10 per cent of the luxury US market. Indeed, residential sales to foreign investors and immigrants reached a total of $82 billion over the year to March 2011, according to the National Association of Realtors – an increase of $66 billion from the year before. With interest from foreign investors still on the up, drawn by the exchange rates and lower property prices, America’s proposed visa giveaway could be an offer that property investors can’t refuse

In the basins of the Garachiné-Sambú and Bayano-Chucunaque-Atrato rivers there are an estimated 900 million barrels of oil, according to studies conducted by the company Empresa OTS Latinamérica LLC. This was confirmed in a statement this afternoon by Panama’s Energy Secretary Juan Manuel Urriola, who added the results of the study show there is the potential for the development of commercial hydrocarbons in those basins. The exploitation of these assets would represent $15 billion dollars for the Panamanian state in the form of royalties and taxes, estimating the price per barrel of oil at $100 dollars, over a period of 20 years, as reflected in the calculations made by the consultant. “OTS Latinamerica LLC suggests a bidding process program for the exploration areas, based on the geographical division of four blocks for each basin,” said the press release. The Garachiné-Sambú basin has a total area of 7,410 square kilometers, and the Bayano-Chucunaque-Atrato basin has 7,630 square kilometers. The third phase of the study presented to the National Secretariat of Energy, aims to describe the geology and petroleum system of the basins in question, and the delineation of the blocks to be offered in bidding for exploration areas. OTS delivered data with all of the information already classified and digitized through specialized software, that will serve to facilitate the start of the bidding process. (La Prensa)

Ricardo Martinelli’s administration is backing an amendment to the Trust Fund for Development, this time to use part of the resources for the construction of infrastructure in the reverted areas. This would be the second change to the law in a year. In June 2010 the National Assembly approved the use of 35% of the fund to purchase the Northern and Southern Corridors. This time, the change would allow the fund to “invest in itself” explained the Minister of Finance, Alberto Vallarino. Among the areas that could see the investment of these funds would be all of the Western side of the Panama Canal, including Farfán and Punta Batele, as well as Clayton, and especially the road leading to the Centennial Bridge, where the new “hospital city” is being built. The analyst and president of the Panamanian Association of Business Executives John Bennett believes this is an issue which first should be discussed at length, and the regretted that the Government thinks they are the only ones who can build infrastructure. His advice would be to allow companies to “make their investments,” such as in the case of the railroad. “I get nervous when politicians start to tell us about the great things they will do with our money,” said Bennett, referring to the possible spending of the money in the investment fund, money saved through the privatization of formerly state owned enterprises. (La Prensa)

Thank you Don !

PANAMA CITY, June 15 (Reuters) – Panama’s economy expanded 9.7 percent during the first three months of 2011 from a year earlier, the government statistics agency said on Wednesday. The robust quarter in one of Latin America’s top-performing economies was driven by traffic through the country’s transoceanic canal, as well as by construction and banking, the statistics agency said in a report. Panama’s economy appears to be accelerating after growing 7.5 percent last year. Annual growth was 8.7 percent in the fourth quarter. Helped by the $5.25 billion expansion of the Panama Canal and foreign investment, Panama’s economy will likely grow 9 percent this year, Finance Minister Alberto Vallarino said in a statement. The fast pace of growth has led come analysts to worry that Panama’s economy could overheat. The country’s annual inflation rate rose to 6.4 percent in May — its fastest pace in more than two years. Policymakers show no sign of curtailing aggressive infrastructure spending while pushing deficits to regularly modified legal limits, say critics. “This strong economic growth leads to questions of overheating,” Boris Segura of Nomura Securities said in a research note on Panama published on Tuesday, pointing to wage and price pressures, as well as government spending that is not reflected on budget accounts.

The investment portfolio of the banking center in Panama amounted to $13.46 billion at the end of January this year, an increase of 13.43% over the same period in 2009. The portfolio is dominated by nearly 70% foreign investment totalling $9 billions, am anual increase of $961 million or 10.75%, according to figures complied by he Superintendence of banks.

and Colon Port Terminal S.A. (”CPT”). These companies will be renamed Oiltanking Colon S.A. and will be managed and operated by Oiltanking. Oiltanking Colon S.A. is located at the Atlantic entrance of the Panama Canal, within the breakwater, at the Cocosolo Bay. The aim of the terminal is to accommodate the increasing demand for marine fuels by vessels transiting the Panama Canal and calling the ports in the area. The first phase of the terminal is currently under construction and will be commissioned in the third quarter of 2011. It consists of 300,000 barrels of tank capacity for the storage and handling of marine fuels along with an exclusive 260 meter jetty with a draft of 12.5 meter and ability to receive PANAMAX vessels. The jetty has also two barge positions. Additionally, Oiltanking is already working on the first expansion of 450,000 barrels and truck loading facilities which is expected to be operational in 2012. The terminal still has land available for further construction. (Tankterminals.com)

In February 2011 we saw 113,218 unique visitors compared to about 104,000 during February 2010, for a growth rate of 8.8% year on year. I like to look at the website traffic in stats in this manner because there are seasonal ebbs and flows and I think it’s more accurate to compare the numbers in this manner. Copyright 2011 by Don Winner for Panama-Guide.com

The audit and consulting firm Deloitte predicts growth for the Panamanian economy of between 6.0% and 6.5% this year, boosted by exports, construction and tourism.
It is expected that during the period 2010 – 2015, the economy could register a real growth of gross domestic product at over 6% and a moderate inflation of 2.5% (although high in historical terms relating to Panama).
The level of public debt, which now stands at about 40%, could be reduced over the next five years to a level below 30% in 2015.
Forecast to rebound in exports as the recovery deepens consumer confidence in the advanced countries, according to said partner and financial adviser to the firm, Domingo Latorraca, who further noted that although there are good prospects for the world economy, not be exempt from financial instability.

A few days before the start of the new year, economic projections for next year are positive. The Panamanian economy is expected to grow between 5% and 7.5% over the next year. These are the calculations of experts on the matter and, of course, the government has projected the Gross Domestic Product to grow 6.5% in 2011.
For groups of experts such as the National Competitiveness Center (NCC), the Center for Economic Studies at the Chamber of Commerce, Industries and Agriculture (CEECAM), the Research and Development Group, S. A. (INDESA) and Latin Consulting Group, the growth for next year will be grounded in the transportation sector, as well as telecommunications and trade. Although the outlook is for increased domestic production, Felipe Chapman, the Managing Director of INDESA says that some of the activities may be left behind in domestic production are agriculture, livestock and fisheries. Other indicators such as unemployment and inflation would suffer no major change from the numbers seen in 2010. (La Estrella)