Alcogal

There are two types of insolvency proceedings contemplated under the Law of Insolvency Proceedings: liquidation and reorganization. Liquidation Under the insolvency proceeding of liquidation, the right of creditors to engage individually in enforcement actions is suspended. Creditors with a pledge, mortgage, or other real security right, however, may continue enforcement actions individually or opt to …

Banking & Finance Regulations | Insolvency Proceedings Read More »

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In Panama, it is not possible to use a “security interest” as a generic and general guarantee. Panamanian law recognizes personal guarantees and real guarantees. The most common real guarantees (in rem) are the pledge, mortgages and antichresis.  Regarding pledge and mortgage there are some aspects which are very similar and do not pose a …

Banking & Finance Regulations | Similarities between pledges and mortgages Read More »

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A pledge is a type of real guarantee which may be given over all kinds of movable assets. A pledge has to be constituted with the same formality as the agreement setting out the obligations it guarantees. However, it is essential that the pledge asset is delivered to the creditor or a third party as …

Pledges and Mortgages Read More »

Regarding Withholding Tax, it is important to take into consideration that payment of interest, commissions and other charges made to local lenders will not be subject to withholding tax but may be subject to income tax and other taxes and should be included in their tax returns. Payment of interest, commissions and other charges made …

Banking & Finance Regulations | Loans: Taxes Read More »

Impact of Regulatory Environment and Economic Cycles January 7, 2022. Fortunately, prior to the COVID-19 outbreak Panama had mostly avoided the recent economic down-cycles in Latin America and beyond. From 2001 through 2013, Panama’s economy grew at an average of 7.2% per year. However, in recent years this dropped to 4.9% in 2016, rising to …

Banking and Finance Regulations – Outlook of Panama´s Loan Market Read More »

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