Guatemalan banks ask for more liquidity

The local banking system started to feel the effects of the international financial crisis with credit restrictions in place from international correspondent banks.

Thursday, November 6, 2008

Some entities have already lost this option, while others that have managed to borrow money have found that the price has increased.

This is because the national banks are seeing a considerable reduction in their liquidity for loans, a problem which could be resolved by reducing the main Guatemalan rate or with decrease in the percentage of legal reserves, bankers said.

More on this topic

Salvadoran Banks ask for lower credit rate from the IDB

December 2008

ABANSA believes that the cost of accessing the $500 million made available with IDB funds is too high.

Armando Arias, president of the group said that the rate of the funds corresponds to the LIBOR plus 400 base points more in commissions and is practically the same as the rates offered by other international lenders.

$500 million for Salvadoran financial sector

November 2008

In an unprecedented move since the dollarization of the country's economy, the BCR will inject ready money into the local financial sector.

The IDB approved an operation for the Central Reserve Bank to buy a credit portfolio totalling $500 million from banks giving them more liquidity to support the production sector.

Guatemalan Government injects $275 million.

November 2008

The Monetary Board in charge of directing macroeconomic policies of the country opened a special account in US dollars and placed it at the disposal of the private banks to help them acquire liquidity.

Maria Antonieta Bonilla explained that the account would come into effect as of 31st Jan, 09 with the objective of giving liquidity to banks in the system that have had some difficulties.

Panamanian banking adjust credit conditions

October 2008

The rise in the cost of money, which was announced as an adverse consequence of the lack of liquidity on the global stage, is being felt in the country.

The rules of the game have changed. One month ago there was talk about the possible effects that Panama would feel from the financial crisis which started in the United States and expanded to Europe, Asia, and Latin America.

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