VIII. TRADE AND PROJECT FINANCING BANKING AND FINANCING The banking sector is one of the most dynamic areas of the economy (Panama's 106 banks registered total deposits in 1993 of US$ 21 billion, and US$ 26 billion in total assets, a 13 percent increase from 1992). It is represented primarily by the Panamanian Banking Association (ABP). Banks are licensed and regulated by the National Banking Commission (CBN), a relatively weak, semi-autonomous regulatory/oversight body whose membership includes private bankers. Banking laws give highest priority to banker-deposit confidentiality. Trading is unaffected by foreign exchange controls, since the U.S. dollar is used as the national currency. General financing availability: in mid-1994 the banking sector had a high level of liquidity. Private financing is readily available. The Government of Panama does not maintain statistics on the sources or level of privately- financed investment or trade and is not itself an important lender. There is no exchange rate risk or limits on outflow of dollars, and commercial terms are readily available. Currently there are no projects in Panama large enough to require multi-institutional "bundling" arrangements, although the Overseas Private Investment Corproation (OPIC), the U.S. Export-Import Bank (Exim), and the Inter-American Development Bank (IDB) do have a number of projects in Panama. OPIC in recent years has provided insurance or financing for over 30 projects in Panama, 10 of which are still current and provide insurance for ventures in manufacturing, agriculture, and infrastructure (totalling some US$ 7 million). Exim in 1993 participated in the financing of the Government of Panama's purchase of a Westinghouse aviation radar system, and currently is providing financing in excess of US$ 121 million in insurance and guarantees (short, medium and long-term) in a number of sectors in Panama. The Commodity Credit Corporation's GSM program in Panama for fiscal year 1994 totals US$ 15 million (rice, feedgrains, protein meals, and wheat), with significant disbursements still available in the rice and wheat programs as of June 1994. The Inter-American Development Bank has several major current projects, including the financing of a study for GOP development of the U.S. military bases reverting to Panamanian control under the Panama Canal Treaties between 1994 and 1999. The World Bank (IBRD) has a number of small social-sector-oriented projects, but is currently not financing any major infrastructure of other projects in Panama. Release of further tranches of the IBRD's economic recovery loan for Panama is dependent upon significant improvements in the government's economic liberalization and privatization program. As noted above, Panama has held discussions with IBRD about membership in MIGA, but has no application to join at present. The incoming Perez Balladares government is expected to seek approval from the IFI's for a number of new infrastructure and social sector investment projects. LIST OF PANAMANIAN BANKS WITH CORRESPONDENT U.S. BANKS Banco Comercial de Panama, S.A. (BANCOMER) P.O. Box 7659 Panama 5, Republic of Panama Tel: (507) 63-6800 Fax: (507) 63-8033 General Manager: Emanuel Gonzalez-Revilla U.S. Correspondents: Citibank N.A., New York The Bank of New York, New York The Chase Manhattan Bank, N.A., New York Marine Midland Bank, N.A., New York Barnett Bank of South Florida, N.A., Miami Banco Continental de Panama, S.A. P.O. Box 135 Panama, 9A, Republic of Panama Tel: (507) 63-5955 Fax: (507) 64-3359 General Manager: Paul Smith U.S. Correspondents: Chemical Bank, New York Citibank, New York and Miami Credit Suisse, Miami Nations Bank, Miami Standard Chartered Bank PLC, Miami Banco de Latinoamerica, S.A. (BANCOLAT) P.O. Box 4401 Panama 5, Republic of Panama Tel: (507) 64-0466 Fax: (507) 63-7368 General Manager: Ramon Gilberto Perez U.S. Correspondents: Banco Atlantico, New York The Chase Manhattan Bank, New York Extebank, New York AmTrade Bank International, Miami Barclays Bank PLC, Miami Capital Bank N.A., Miami Hamilton Bank N.A., Miami The International Bank of Miami, Miami Republic National Bank of Miami, Miami Popular Bank of Florida, Miami Banco del Istmo, S.A. P.O. Box 6-3823, El Dorado Panama, Republic of Panama Tel: (507) 69-5555 Fax: (507) 69-5168 General Manager: J. Montague Belanger U.S. Correspondents: Capital Bank, Miami Nations Bank, Miami Standard Chartered Bank, Miami Banco Atlantico, Miami Barclays Bank PLC, Miami The Chase Manhattan Bank N.A., New York Brown Brothers Hamman & Co., New York Banco del Pacifico, S.A. P.O. Box 6-3100, El Dorado Panama, Republic of Panama Tel: (507) 63-5833 Fax: (507) 63-7481 Operations Manager: Luis E. Hernandez U.S. Correspondent: First Chicago International Bank, New York Banco Disa, S.A. P.O. Box 7201 Panama 1, Republic of Panama Tel: (507) 63-5933 Fax: (507) 64-1084 Manager: Rafael Endara J. U.S. Correspondents: The Chase Manhattan Bank N.A., New York and Miami Marine Midland Bank, New York Nations Bank International, New York Dadeland Bank, Miami National Westminister USA International, Miami Banco General, S.A. P.O. Box 4592 Panama 5, Republic of Panama Tel: (507) 27-3200 Fax: (507) 27-3427 General Manager: Raul Aleman Z. U.S. Correspondents: Citibank N.A., New York The Chase Manhattan Bank N.A., New York Marine Midland Bank, New York Bank of America N.T. & S.A., San Francisco Nations Bank, Atlanta Dadeland National Bank, Miami First Union Bank, Miami Banco Internacional de Costa Rica, S.A. (BICSA) P.O. Box 600 Panama 1, Republic of Panama Tel: (507) 63-6822 Fax: (507) 63-6393 General Manager: Jose Francisco Ulate U.S. Correspondents: Citibank N.A., New York BankAmerica International, New York Banco Atlantico, New York The Bank of New York, New York Banco Internacional de Panama, S.A. (BIPAN) P.O. Box 11181 Panama 6, Republic of Panama Tel: (507) 63-9000 Fax: (507) 63-9514 General Manager: Rene A. Diaz A. U.S. Correspondents: Nations Bank International, Miami Barclays Bank, Miami Banco Internacional de Costa Rica, Miami Banco Latinoamericano de Exportaciones, S.A. (BLADEX) P.O. Box 6-1497, El Dorado Panama, Republic of Panama Tel: (507) 63-6766 Fax: (507) 69-6333 Chief Executive Officer: Jose Castaneda U.S. Correspondents: The Chase Manhattan Bank N.A., New York Citibank N.A., New York Credit Lyonnais, New York Swiss Bank Corporation, New York Barclays Bank PLC, Miami Banco Panamericano, S.A. (PANABANK) P.O. Box 1828 Panama 1, Panama Tel: (507) 62-0881 Fax: (507) 69-1537 VP of Operations: Ruth B. de Arauz U.S. Correspondents: American Express Bank, New York Marine Midland Bank, New York Hong Kong and Shanghai Bank, New York Popular Bank of Florida, Miami Hamilton Bank N.A., Miami Barclays Bank PLC, Miami Nations Bank International, Miami Note: This list is intended to be representative and not complete. Further detailed information on these banks and other banks in Panama can be located in the Polk Register, the Telerate Bank Register, or by contacting the Asociacion Bancaria de Panama (Panamanian Bank Association), P.O. Box 4554, Panama 5, Republic of Panama; Tel: (507) 63-7044, Fax: (507) 23-7630 or 63-7783. (Refer to Appendix C for the three U.S. Banks with operations in Panama).