Guatemala: Companies Seek Credit Abroad

Local companies have taken out loans with foreign banks worth approximately $1.2 billion.

Wednesday, July 28, 2010

The head of the Guatemalan Banking Regulator (SIB), Édgar Barquín, indicated that the loans mostly come from Panama and the USA.

"According to Barquín, one of the reasons companies have looked elsewhere for credit is that they have found better terms abroad, such as lower interest rates or less strict requirements".

Javier Zepeda, Executive Director of the Guatemalan Chamber of Industry (CIG), believes this is proof that the government's monetary policy committee should reduce the base interest rate, which is currently set at 4.5%.

More on this topic

Private Sector Credit Still Growing in Guatemala

December 2011

Between November 2010 and November 2011 loan grants have risen by 14%.

The boom being seen in Guatemala’s economy is one of the main reasons explaining the rise in private sector credit, a key indicator of the state of an economy.

In Guatemala’s case, loans granted by financial entities have grown by 14% this year, driven not only by economic growth but also by the interest rate structure which favors debtors.

Panama: 17% Increase in New Loans

October 2011

At the close of July, $11 billion worth of new loans were granted, 17% higher than in the same period last year.

Among the different sectors of the economy, mining, livestock and fisheries were those receiving the most new loans.

"The biggest increase registered, in terms of percentages, was in mining and quarrying, where $15.2 million in new loans was granted, up from $12.3 million compared to figures from the same period in 2010.

Credit Continues to Drop in Guatemala

June 2009

June shows 12-month growth in credit at 6.7%, below the 11.7% it had at the beginning of this year.

According to the president of the Chamber of Industry of Guatemala, Thomas Dougherty, uncertainty about the international economy and contingency plans brought about by companies are a few of the causes for the decrease in requests for lines of credit.

Salvadoran Construction Chamber requests $375 million

November 2008

The group proposes that housing and public works be reactivated in order to face the crisis and revive the economy.

Yesterday, the Salvadoran Construction Chamber (Casalco) proposed a preliminary plan (Law of Preferential Interest Rates), which would require $375 million for housing which would be financed by commercial and state banks.

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