In order to foster the development of local markets, Panamanian authorities have decided to restrict the purchase and sale of Panamanian bonds by pension funds and insurers to the local market.
The change has generated controversy because some participants in the sector will be limited on transactions, while others will not see any major impact on the transactions currently being made in international markets.
An article in Capital.com.pa reports: "Mauricio Ruiz, president of the Panamanian Association of Insurance Companies (Apadea) and Mauricio de la Guardia, former president of the business organization, says that according to his interpretation of Article 214 of the aforementioned bill, these companies will not have any impediment to buying bonds on the international market.
Regarding the impact of the regulation Mauricio Ruiz indicated that any limitation on the purchase / sale of investment securities issued or guaranteed by the Panamanian State, would be inconvenient to any investor.
But he insisted that insurers do not think there will be a limiting factor in this regard, either from the law or the Superintendency.
When asked about the changes to the law John Pastor, manager of Progress, a private pension fund manager, said they proposed different percentages of investment in such a way as to be more consistent with international trends which predict increases in foreign investments. "
Source: Capital.com.pa
More on this topic
February 2010
Panama’s insurance industry grew from 17 participants two years ago to 27 today, and $850 million in insurance policies.
An update to Panamanian insurance legislation has been discussed for the past 8 years. Talks are currently being held between insurers and regulators to modify Law 59 of 1996, the one currently in force in a growing, competitive insurance market.
February 2010
FFD sold a number of 2027 Panamanian Sovereign Bonds in $441.3 million; it had bought them for $362.9 million.
The transaction netted “Fondo Fiduciario para el Desarrollo” (FFD), a state entity, proceeds for $78.2 million, after legal costs.
FFD had $902.2 million in Panamanian sovereign debt (73% of its investment portfolio). The face value of the sold bonds was $351.6 million.
May 2011
The financial institution announced the placement of $40 million in the local market, the first outlay by a multilateral in the country.
This is the first outlay by a multilateral institution in this market and one of the largest that has been made in Panama, in terms of amount and term.
September 2010
Ad Astra Rocket Company has announced a limited public offering of shares in the Costa Rican market.
The capital placement would be $553,791 which amounts to 55,379,100 common shares with a minimum investment amount of $25,000.
Because it represents a restricted limited public offering, the securities are intended only for institutional investors such as brokers-dealers, financial institutions, international organizations, investment funds, pension funds and certain trusts.
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