Growing Worries Over Guatemala's Public Debt

Public debt has grown rapidly from $2 billion in 1998 to $13 billion in 2013.

Thursday, November 7, 2013

This was explained by the president of the Bank of Guatemala, Edgar Barquín, who recommends establishing a debt policy in the country. "In the draft budget for 2014, the amount of debt accumulated by Guatemala will reach $14 billion," reported Prensalibre.com.

"We are reaching a position in which the debt ratio must be studied," says Barquín.

He said that in order for the country to achieve an investment grade rating by the rating agencies, government borrowing should not exceed 20% of GDP, 14% of the tax burden and the fiscal deficit should stand at 1%. However, the debt has reached 25% of GDP, 10% of the tax burden and there is a fiscal deficit of 2%.

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