Main rate debated in Guatemala

Businessmen estimate that a reduction in the rate which is now at 7.25% would help to reactivate credit.

Thursday, November 27, 2008

There are division and the debate is hot. The petition from the industrial sector to lower the main interest rate in order to reactivate the economy has its supporters and dissidents.

Representatives from the private sector believe that it is time to make an adjustment. Experts and professionals from Banquat say that inflationary pressure should be consider before acting out.

Industrial companies estimate that if the reference rate was to drop there would be an expansion of credit to the private sector, which on November 13 showed an interannual increase of 12.6%, way below the 28% for the same period in 2007.

More on this topic

Guatemala: 7 Months of Crisis

September 2009

Key economic indicators show less economic deterioration than other countries of the region.

An article in Prensa Libre published comments by two Guatemalan economists, Mario Cuevas and Carlos González Arévalo. The former is president of the Center for Economic Investigations (CIEN), while the latter represents the Association for Social Studies and Investigations.

Prime rate drops to 7% in Guatemala

January 2009

The Monetary Board reduced the prime interest rate by .025 percentage points.

Prensalibre.com reports: "The decision was due, among other things, to the drop in the oil and food prices, as well as the forecast of recession in the world's largest economies, according to explanations at a press conference yesterday afternoon by the president of the Bank of Guatemala, Maria Antonieta Del Cid de Bonilla."

Direct impact of US crisis in Guatemala ruled out

September 2008

Banking monetary and authorities in the country have ruled out a direct impact on Guatemala's economy.

Banking executives agree that the economic situation in the country is uncertain; nonetheless, they need to keep a close eye on what is happening in the American financial market.

Guatemala: Leader Rate Drops to 4.5%

September 2009

The Central Bank approved a reduction of 0.25 basis points in the leader rate, setting it in 4.5%.

The Private Enterprise was looking for a reduction of 0.50 basis points, arguing there is no inflationary pressures right now.

María Antonieta de Bonilla, President of the Central Bank of Guatemala (Banguat), commented that the reduction of the rate "...

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