Panama Papers dents new Panama incorporations, seen down 20%
[PANAMA CITY] The number of new companies incorporated in Panama is on track to drop around 20 per cent this year following the massive leak of offshore financial data known as the Panama Papers, the government said on Thursday.
Finance Minister Dulcidio De La Guardia told an investment forum that new openings of companies in Panama had been falling by about 7.5 per cent per year since 2008, before accelerating this year after the Panama Papers scandal.
"If the current trend continues, the portfolio of companies incorporated in Panama is going to drop by about 20 per cent this year," Mr De La Guardia said.
Details of the Panama Papers were published in early April, embarrassing a clutch of global business and political leaders and sparking criticism of Panama for its lack of transparency.
Mr De La Guardia said the decline in company openings after 2008 was due to higher transparency requirements by the isthmus nation.
The data leak scandal had not affected the Panamanian economy nor its credit rating, the minister added.
The scandal prompted a slew of investigations into suspected tax dodgers, putting the spotlight on global tax havens.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
US inflation rises in line with expectations in March
Thames water crisis risks £100 billion UK investment plan
Indian central bank issues draft guidelines for web aggregators of loan products
Vietnam National Assembly head resigns amid graft purge
China central bank flags bond investment risks to some financial institutions: sources
Xi tells Blinken US, China should be 'partners, not rivals'