In total, Guatemalan companies negotiated $569.7 million in loans between January 1st and June 17, motivated by low international interest rates.

“Edgar Barquín, Banking Superintendence, explained that foreign banks, mostly from the U.S. and South America, are looking for customers in the country, due to lower interest rates abroad”, reported Prensalibre.com.

Source: prensalibre.com

More on this topic

Guatemala: Political Crisis Hasn´t Clouded Economic Optimism

October 2015

In September the banking loan portfolio to the private sector recorded an increase of 17% compared to the same month last year.

Despite the political turmoil that the country has seen so far this year, bank credit portfolios have maintained positive figures and growth rates above 10%.

El Salvador Loses Access to IMF funds

April 2012

The IMF has temporarily suspended the availability of emergency funds for El Salvador because it has not met agreed targets, having exceeded government spending.

The IMF reported that the Salvadoran government may not use a precautionary loan (SBA) of $750 million, said Carlos Acevedo, president of Banco Central de Reserva (BCR).

Guatemala: Preference for Foreign Credit

September 2011

Companies are choose to seek financing in foreign banks, because they offer lower rates.

The Bank of Guatemala (Banguat) has revealed that domestic banks have lost their appeal compared to credit lines offered by foreign banks.

There seems to be a greater interest by Guatemalan companies in negotiating foreign loans, according to Banguat’s figures regarding transfers abroad for paying interest and capital repayments.

Guatemalan Banks Renegotiate 70% of Foreign Credits

February 2009

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."