Panamanian payment guarantee companies have asked the government for greater regulation of their sector, local daily El Panama reported.
Central de Fianzas chairman Arturo Garrido said the authorities need to establish the differences between payment guarantee companies, known locally as "afianzadoras", and credit insurance companies.
The "afianzadoras" are companies that pledge to pay the financial obligations of a third party in the event the latter doesn't make good on those debts, which puts them in a grey area in terms of regulation.
Panama's congress is currently studying draft legislation that would regulate the "afianzador" industry.
Source: Business News Americas
