Coming off the back off of an unprecedented period of prosperity and growth, the Panamanian government recently created a National Savings Fund (the "Fund") as a forward-looking initiative aimed at safeguarding the country against future negative shocks (e.g., natural disasters, tail risk events, economic recessions, etc.). The product of an extensive canvassing of sovereign wealth funds from around the world and a review of their respective best practices, the Fund Law seeks to provide the Panamanian government with a sophisticated and transparent investment vehicle to manage the country's surpluses.
"Only Panamanian nationals can practice law in Panama, so it's
difficult for foreign firms to set up shops here," one partner points
out. As a result, the legal market in Panama sees little participation
from international firms and is consequently dominated by a handful of
CONTEXT AND TRENDS
As one of the fastest growing economies in Latin America, Panama recorded a 10.6% economic growth in 2011 while many of the bigger economies just had a modest growth....