Panama Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in panama, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Trade Financing
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Methods of Payment

As Panama is an international banking center, there are several payment options for Panamanian importers.  The local banking system readily provides irrevocable letters of credit. The banking sector is modern and efficient and payments have not represented a big issue for Panamanian importers, but it does happen. U.S. exporters may gain a competitive advantage by using open account terms coupled with export credit insurance. The terms allow Panamanian buyers to take receipt of goods and sell them to obtain the needed cash to repay the U.S. exporter. In the event of default, the export credit insurance would make the U.S. exporter whole. The U.S. Commercial Service recommends using credit insurance and offers two helpful videos on payment methods and financing options available to U.S. companies. To see the videos, visit  https://www.trade.gov/how-export-videos 

Several banks operating in Panama have longstanding relationships with the Export-Import Bank of the United States, which is the leading issuer of export credit insurance to U.S. exporters and can help you assess the creditworthiness of a Panamanian buyer.  The CS Panama office can also conduct background checks on Panamanian buyers before deciding to offer financing terms. For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide.

Foreign Exchange Controls

There are no foreign exchange controls. The U.S. dollar is the national currency and there are no restrictions on capital flows into or out of the country.

Banking Systems

Since the U.S. dollar is Panama’s currency and there is no central bank, the National Bank of Panama has specific functions of a central bank and serves as the clearinghouse for the banking system.

Panama opened its banking sector to foreign competition in 1970 under legislation that prioritized banker-depositor confidentiality. The banking legislation establishes three classes of operations: general license banks operate full-service banks in Panama and compete for domestic and foreign deposits and loans; international license or “offshore” banks can only accept deposits from persons or organizations located overseas; representative offices can only perform representational activities. There are also two state-owned deposit-taking institutions. Foreign and Panamanian banks compete on equal terms. Banks are organized in the Panamanian Banking Association (both Panamanian and Foreign Banks) and are licensed and regulated by the Banking Supervisory Authority (Superintendencia de Bancos). Panama’s banking system does not have a deposit insurance scheme.

US Banks & Local Correspondent Banks

For a complete listing of banks operating in Panama, visit the Panamanian Banking Association’s website, where you will find a comprehensive and up-to-date list: http://www.asociacionbancaria.com.

To access Panama’s ICS section on financing, visit the U.S. Department of State Investment Climate Statement website.

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Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

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