The Superintendent of Guatemalan Banks, Edgar Barquín, said that the purpose of this instrument would be to compensate for the likely loss of foreign credit lines.
According to an article in prensalibre.com, "credit lines granted by correspondent banks to local ones in the past 15 months have fallen by $130 million,” and "there are now nearly $1.6 billion in lines of credit."
Banking liquidity is above levels seen in recent years.
The president of the Banco de Guatemala, Edgar Barquin, said the bank plans for this year an increase in bank credit of 12.2%.
"Luis Lara, manager of Industrial Bank, said credit demand of individuals and companies have recovered since October 2010 and coincides with the growth of this variable estimated at 12 percent because it is expected for the economy to recover after the effects of the global financial crisis", reports the article in Elperiodico.com.gt.
Up to and including April 9, the total growth (including loans in local and foreign currency) was 8.3%, the lowest in the last two years.
Despite measures taken by monetary authorities to keep the money market liquid in order to stimulate credit, financing to companies has not reactivated. Directors of the Industrial Bank and G&T Continental state that they are receiving up to 20% fewer loan requests.
The approved loan by the IDB must be submitted to the National Bank of Panama and it will be used to restore liquidity.
The National Bank of Panama will offer lines of credit for banks through a financial stimulus trust.
According to what Mipunto.com published: "This loan was provided through the New Liquidity Program for Sustainable Growth of the IDB, which has 6 billion dollars to help countries and their commercial banks that are burdened by the lack of credit due to the crisis to get money."
70% of the Foreign credit lines in the Guatemalan Banking System were renegotiated under new conditions.
In an article published in sigloxxi.com, Édgar Barquín, the Superintendent of Banks, explained that banks "have been able to defer or restructure them [the credit lines] to maintain the financing used by local banks in productive sector loans" and that the country "has been fortunate in the way correspondent banks have responded."
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