Act 741, which concerns trust agreements was approved by the Assembly on November 4, 2010, and published in the Official Gazette on January 19, 2011.
Gisella Canales’ article on Laprensa.com.ni reported that the international firm KPMG, which provides audit, tax and advisory services, "initiated a series of studies on the use of trusts in Nicaragua, in order to promote the use of this legal model as an instrument to generate business."
"In the opinion of Victor Perez of KPMG Mexico, ‘Nicaragua has just taken an important step’ with the approval of this law, as this country’s trusts have allowed secure and transparent investment and business, particularly in infrastructure projects. "
"Jony Afu Batista, of KPMG Panama, said that his country’s trusts are used in the stock market and even to guarantee the payment of severance pay for workers, examples Nicaragua could follow."
The Superintendency of Banks in Panama is working on a bill to amend the Trusts Act governing the trust business in the country.
From an article by Manuel Castillo, the Superintendency of Banks of Panama:
Law 1 of January 5, 1984 which governs the trust business in the Republic of Panama, defines trust as a legal act whereby a person called settlor transfers assets to a for a person named as trustee to administer or dispose of them in favor of a trustee or beneficiary, who may be the settlor himself.
The new law will regulate Trusts, which did not exist before in Nicaragua.
According to Walmaro Gutierrez, head of the Parliament´s Economic Affairs Committee, the Trust will boost the construction sector and provide wealth management and an investment pipeline, among other things.
This fund will cover the additional costs of buying electricity that the Esti hydroelectric plant is unable to produce.
The damage to the Esti hydroelectric dam, which is due to be operational again in May 2012, has forced Empresa de Transmisión Eléctrica S.A to sign a trust agreement for $315 million with the Ministry of Economy and Finance (MEF).
Receive more news about Banking
Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.
I have six building lots in the Punta Leona Resort ready for construction. I am looking for a partner to provide financing and or construction. Wanted partner for financing and/ or construction in the...