Cayman Government Seeks Enhanced Economic Links With Panama

by Amanda Banks, Tax-News.com, London

16 March 2006

The Cayman Islands government is seeking to encourage closer economic links between the Cayman Islands and Panama, particularly in the fields of financial services and tourism.

Speaking at a presentation for the Cayman Islands Trade Mission in Panama last week, Minister of Tourism, Environment, Investment and Commerce, Charles Clifford noted that: “As significant players in the global economy, our two countries have much in common.

He added that: "We both have thriving tourism and financial services industries which are central to each country’s current prosperity, and to our future success."

Mr Clifford noted that the Cayman Islands has achieved strong growth in many facets of the financial services industry, including banking and trusts, legal and accounting services, company services, mutual funds, insurance, vessel registration, capital markets products and the Cayman Islands Stock Exchange.

Currently, there are just over 300 banks in Cayman, including 43 of the world’s largest 50 banks.

"Our modern, sophisticated infrastructure supports real-time online access to the world’s major financial markets, meeting the needs of clients who demand cross-border services equal to those of New York or London," Mr Clifford commented.

The Minister continued that another key component of Cayman’s financial industry is company registration.

"Supported by a well-established companies regime, reasonable reporting requirements and flexible corporate structures, company registration continues to experience growth. The range of purposes for which a Cayman company can be used include investment, sales processing, trading, shipping operations, stock dealing, real estate holding, the ownership and licensing of patents, and international financing," he noted.

“The Cayman Islands Government is committed to delivering growth and ensuring the Cayman Islands remains highly efficient and sensitive to the requirements of business. Our reputation and commitment to excellence is paramount, and we are committed to serving the needs of our global clientele," he added.

Mr Clifford stated that current forecasts project real economic growth for this year at over 5% for the Cayman Islands.

"As a British Overseas Territory, Cayman also benefits from a very stable political environment, one in which fiscal prudence is another well-established tradition within central government. Our commitment to transparency and good governance reinforces our islands economic and monetary stability, and this, combined with our commitment to maintaining a revenue base without any form of direct taxation, are additional factors that continue to draw the attention of foreign investors," the minister observed.

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