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Panama Papers don’t affect local Real Estate market
Panama Papers don’t affect local Real Estate market. Last April 3, over 11.5 million documents created by a Panama law firm detailing attorney-client and financial information regarding 200,000 offshore entities dating back to the 1970’s were leaked online. This is known as the “Panama Papers” scandal.
At that time, the NY Times reported, “The Panama Papers have exposed how some of the world’s most powerful people may have used offshore bank accounts and shell companies to conceal their wealth or avoid taxes.”
Days after the leak, the BBC asked, “How has the Papers affair affected Panama?” That’s a very good question. Here is the answer.
Last May, a NPR Organization headline reported, “Panama Papers Fallout Hurts A Reputation Panama Thought It Had Fixed.” In spite of the hurt reputation, the NPR also reported, “Panama is on the rise, too. Its economy, expected to grow by 6 percent this year, is the bright spot in Latin America.”
A few days later, Forbes Magazine wrote, “Investors think Panama’s prospects are bright. The government recently floated a $1.2 billion bond issue, which was quickly oversubscribed. Government debt to GDP is only 40%; in the U.S. it’s over 100%.”
By May 9, Eyda Varela de Chinchilla, Panama’s Vice-Minister of Finance said at a LatinFinance panel discussion in London that: “The impact was zero and I think the impact is going to be continuous zero,”.
On July 12, local news media reported, “Panama gets thumbs up from Morgan Chase… “The Panamanian economy will be the fastest growing in Latin America this year, with a growth that will be around 6 percent, according to estimates from the International Monetary Fund” declared JPMorgan Chase.
Local real estate agents report that real estate sales have not slowed down. One reason is that many pre-construction condominium buyers are from South America who don’t care about the Panama Papers.
In conclusion, Panama’s economy and real estate sales continue growing in spite of the Panama Papers.