The Ministry of Foreign Affairs published in Official Gazette No. 30642-A of October 26, 2026 the Agreement between the Government of the Republic of Panama and the European Investment Bank (EIB) on the establishment of the EIB Regional Representation in Panama. It was signed by EIB Vice President Ioannis Tsakiris on September 28, 2026, and by Foreign Minister Javier Eduardo Martínez-Acha Vásquez on October 13, 2026.

Its Article II accepts that the EIB will set up in Panamanian territory a regional representation in charge of its activities in Panama and in other countries of Latin America and the Caribbean. Under Article I, that representation includes a main office in Panama City and any additional office opened with the Government's agreement. Article III recognizes the bank's full legal capacity to enter into contracts, acquire property and take legal action, and declares its property and archives exempt from search, confiscation, expropriation or seizure.

Articles IV to VII set out the privileges and the economic regime. The office, its agents and their families will enjoy the privileges and immunities of a diplomatic mission under the 1961 Vienna Convention, except for Panamanian nationals. Article VI allows the EIB to hold funds in any currency, operate bank accounts, and freely transfer and convert currencies, and exempts it from customs duties and from all taxes on its income, property and operations. Article VII exempts the salaries of its staff from taxes and social contributions, except those of nationals, permanent residents and tax residents of Panama.

For the financial sector and infrastructure projects, the presence of the European Union's financing arm could bring its lending closer to Panama and the region, in line with the goal of economic and social growth stated in the preamble. The agreement does not commit financing amounts or specific projects; those operations will remain governed by the Framework Agreement on financial cooperation signed in Brussels on April 10, 1996, which Article XIII preserves.

Under Article XIII, the agreement takes effect upon the last signature and has an indefinite duration, with six months' notice in case of termination; Article XII refers disputes to an independent arbitrator appointed under the Permanent Court of Arbitration. What remains is the opening of the office, whose premises the EIB must report to the Government under Article V. Nexo Capital will follow the establishment of the EIB Regional Representation and its first operations.

Research assisted by Sentinel, with editorial verification of official sources. Discover Legislat.ai