Author: Belisario Porras
Panama remains the first merchant marine registry in the world with nearly 8 thousand and more ships of different types and services. As open registry flag (be named that registry which does not maintain restrictions of nationality and in addition contains a series of fiscal and technical advantages), its success is due mostly to the legal development that throughout the years has been directed to the ship mortgage.
Since its conception, the ship mortgage has been determinant in the deposit of necessary trust by its principal beneficiaries (in this case the bank or the mortgagee) both in its legal structure as well as in the registration institutions which support them as means to guarantee legal certainty to its rights in the different credits issued to shipowners that maintain their ships registered under our flag.
On the other hand, due to its practicality and flexibility, the ship mortgage has served as a facilitating instrument to financing in the acquisition of ships and the different operations the shipowners of the Panamanian flag maintain worldwide.
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