The $7.5 billion Pueblo-Panama Plan (PPP), launched in June 2001, will improve the infrastructure of not only Panama, but all of Central America. The plan includes massive interconnection projects involving telecommunications, energy networking, and highways which will serve to facilitate the exchange of goods, energy, and information. Panamanian information infrastructure is already superior to that of its neighbors, and boasts many of the latest technologies-high speed internet, wireless connectivity, and secure servers supported by a highly skilled professional class. Even internet cafes are becoming commonplace.

The topography is varied. There are mountains towards the Caribbean coast, while small hills and vast plains lie towards the Pacific side. The climate is tropical with prolonged rainy periods between May and January. There is a brief dry season between January and May.

The highest point is Volcan de Chiriqui at 3,475m. Panama's natural resources include vast supplies of copper and gold (among other minerals), mahogany forests, and fish - especially shrimp.

About 80% of Panamanians are Roman Catholic, and 14% protestant. Judaism, Buddhism, Islam, Hinduism, and the Bahá'í Faith account for the remaining 6%. Panama houses one of only 7 Bahá'í temples in the world.

During the independence wars of the Spanish colonies, Panama allied itself with Colombia until, in 1903, it re-asserted independence and became the present Republic of Panama.

The canal was built between 1904 and 1914 by the US. It spans 81.3km between the Pacific Ocean and the Caribbean Sea. In 1996, the Canal Commission Board of Directors initiated a $1 billion modernization and improvement program designed to expand capacity. One of the key programs was the widening of the narrow Gaillard Cut, an 8-mile incision through the rock and shale of the continental divide. Before expansion, the passage was only large enough for one Panamax-sized ship to pass through at a time. In August 2002, after five years of operations, expansion of the Galliard Cut was completed, allowing two Panamax-sized vessels to pass through simultaneously.

Panama city retains many evidences of the old colonial regime architecturally and culturally, but today's Panama is a highly sophisticated modern metropolis.

There are political parties: until late 1999 a coalition of the Democratic Revolutionary Party, the Popular Nationalist Party and the National Liberal Party was in power, led by President Ernesto Balladares. As of September 1999, a coalition led by the Arnulfista party assumed power, led by President Mireya Moscoso, widow of former long-time president Arnulfo Arias Madrid. In September of 2004, Martin Torrijos of the Democratic Revolutionary Party took office. He is the current President.

Extremely high external debt, which had led to Panama's exclusion from world capital markets, was addressed in 1996 with a Brady-bond restructuring. In parallel, the Government pursued an aggressive policy of trade and economic liberalization, including partial privatization of key assets, such as electricity, and public transportation which has had an effect on efficiency and service.

The economy of Panama is focused on banking, mining, commerce and tourism, with the canal and the shipping business generally playing an important role. The total value of the financial sector's assets are over $35 billion. This is due, in large part, to the fact that the Government has introduced so many investment incentives.

Near the Canal, the city of Colon houses the Free Zone which contains well over 1,000 companies who ship in excess of $9 billion of goods annually and account for more than 10% of the GDP. Under Panamanian law, companies in manufacturing and processing industries, which export most of their production, receive exemption from most direct taxes and from import duties on machinery and equipment. Other investment incentive schemes apply to agriculture, forestry, energy, housing development, and various aspects of the tourist industry. For example, tourist sector investments which are worth more than $300,000 (in the city) or $50,000 (in the countryside) attract exemption from import duties and real estate taxes for 20 years. They are also exempt from capital taxes, and accelerated depreciation. Also, there are no exchange controls in Panama and no Central Bank. Foreign investment may be freely repatriated, and corporate privacy is protected, to great extent, under the constitution.

For these reasons the economy of Panama is focused mainly on banking, mining, import/export, and tourism-all of which are greatly augmented by the influence of the canal and the shipping business. One of the key motivations propelling lawmakers is to make Panama increasingly attractive to foreign investment. This creates an atmosphere of extreme profitability while raising the standard of living for people throughout Panama. More foreign investment means more jobs and highly competitive services which, in turn, encourages skill specialization, and continued vocational and professional education.

This, perhaps, is why Panama has the largest per capita middle class in Central America-which has led to low crime (the lowest of any Latin American country) and increased social, economic, and governmental stability.

The Bolsa de Valores de Panamá, S. A., (the Panama Stock exchange) is a corporation organized under the Laws of the Republic of Panama. Its shareholder base is made up of the main local banks, including Banco Nacional de Panamá (National Bank of Panama) as well as commercial, insurance and industrial corporations and concerns, businessmen, professionals and stockbrokers.

There is a Board of Directors, made up of nine principals and nine substitutes. Additionally, four committees oversee the Panama Stock Exchange: the Technical Committee, the Computer Data Committee, the Products Committee, the Investment Committee, and the Promotional Committee. These committees are made up of members of the Board of Directors.

The Panama Stock Exchange's operations are performed through qualified stockbrokers who, with the PST's prior authorization, are entitled access to the floor when in session. These people, also known as stockbrokers, act on behalf of corporations which have bought seats on the Exchange.

Transactions can be cleared exactly three days after the transaction (t+3), or at Term whenever the parties agree to deliver the money or securities, or both, at a future date, within the limits set by the Board of Directors (notwithstanding the fact that the parties may decide to settle the operation before the expiration of the agreed term).

Share trading takes place under an open outcry system, with an opportunity for auction once a trade has been posted onto the board. All transactions are recorded with their respective prices and posted to the public on a daily basis by the Panama Stock Exchange. The prices published at the close of the day for the securities quoted on the floor are those of the last operation made in cash on the respective date.