Panama announces law that encourages naval financing
Panama created a legal regime, through Law 50 of 2017, so that companies that grant naval financing and promote the construction of bankable maritime projects are installed in the isthmus.
The regulations came into effect on December 29, 2017, and includes tax, migratory and labor incentives that promise to boost the country’s economic growth. Law 50 helps the conditions for the granting of naval mortgages from Panama, and also creates investment spaces for the creation of large shipbuilding yards. This type of services that Panama has just established also has them located in Canada, Chile, and the United States.
The director of the Public Property Registry of Ships of the Maritime Authority of Panama (AMP), Jose Isabel Quintero, explained that one of the aspects that the law has is that it applies to buy and sell of boats.
Law 50 of 2017 also allows companies located in the isthmus dedicated to the construction of containers, because currently there is no one that even repairs them.
The director of Public Registry of Ownership of Ships of the AMP commented: ‘This law has everything integrated, since it is an adopted measure to promote the logistical efficiency and to prop up the bases of the national marine commerce, comes to harness the growth of the country by means of the push to the banking sector. ‘
The companies interested in obtaining these benefits must obtain a certification that they denominate as a Maritime Project Financing.
Article 2 of Law 50 defines as Maritime Project Financing those that are oriented towards the construction of ships, the construction of shipyards and enabling other premises, workshops or yards for construction of ships and repair of containers that are used for foreign trade, and the construction of offshore wind farms.