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Significance
The move comes in light of April 3's massive leak of documents from Panamanian law firm Mossack Fonseca. The fallout of the leak -- known as the 'Panama Papers' -- could seriously hurt Panama's important financial sector, causing severe and lasting reputational damage and ultimately slowing Panama's hitherto strong economic growth.
Impacts
A slower-than-planned expansion of the IBC could have a negative impact on the services sector.
Reputational damage could make it more difficult to restore important international banking relationships.
A long-term reduction in such relationships could hurt the economy and be especially harmful for smaller Panamanian banks.
Keywords:
Panama,
LA/C,
France,
OECD,
economy,
industry,
international relations,
politics,
banking,
fiscal,
foreign investment,
government,
growth,
investment,
private sector,
reform,
regulation,
social,
finance
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2016
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