Currently, the Executive Branch may issue up to $171 million. If the increase is approved, the number would reach $394 million.
The measure is due to the expectation of an "unprecedented reduction in revenue, up to Q4 billion ($494 million,) due to the global economic crisis," said Juan Alberto Fuentes Knight, Minister of Finance, in an article in sigloxxi.com
The article also indicated that the Government plans to make transfers between portfolios to readjust the budget with Health being the most affected, giving up $46 million and Communications $28 million. Those that will have more are Pro Rural with $50 million and the Army, Ministry of Foreign Affairs and the Mi Familia Progresa (Progress for my Family) program.
The speed with which debt is growing is threatening future ability to pay.
Between January and May alone, the country's debt grew at a rate of $6 million per day, which is setting off serious alarm bells, because if growth continues at this pace, the country could face difficulties in meeting obligations in the future.
The Monetary Board of the Bank of Guatemala approved the issuance of treasury bonds for $223 million.
The international economic crisis is having a strong impact on the finances of the Guatemalan state, which saw revenue fall by 7.6% in the first quarter of 2009 and this translated to $85 million less in tax income. This was the main argument presented by the Monetary Board to approve the issuance of treasury bonds.
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