The agreement is for one year, the $700 million being contingency funds to be used only in the face if serious problems in the national economy.
LaPrensahn.com reported statements by the president of the Honduran College of Economists, CHE, Manuel Bautista: "The Government should seize the opportunities to access resources for contingency cases. The precautionary agreement involves a series of commitments that the country must meet, e.g. control of current spending, which has grown in recent years."
The letter of intent spells out the Guatemalan Government’s fiscal and monetary policy for the 2009-2010 period.
In the letter of intent, Guatemalan authorities have requested a Stand-By Agreement (SBA) for a period of 18 months, with full access to 630.6 million in Special Drawing Rights (SDRs) (about $951 million.) An initial purchase of 420.4 million in SDRs (about $634 million) will be available upon the Board’s approval of the agreement. The rest will be available in five purchases subject to quarterly review. The intention is to treat the agreement as a precaution.
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