President Alvaro Colom announced the construction of a highway linking the border of Mexico and El Salvador.
During a state communications program, known as “Presidential Office”, he said that the official announcement will be made next year, and explained how the project will be funded.
On the subject, Communications Minister Guillermo Castillo added that financing would come from a soft loan provided by Brazil.
At the end of 2011 the country will increase its public debt by $ 4,966 million compared to 2007.
The recently approved budget debt is $ 11,957 million compared to $ 6,991 in 2007.
Mario Cuevas, president of the National Economic Research Center (CIEN), commented that "the trajectory of debt is unsustainable and seeing the rate at which public debt has increased, this will explode in a few years, so there has to be a correction soon."
The government announced the start of the bidding process for four oil fields.
One of the areas to be auctioned is located between the municipalities of San Andrés, San Benito and La Libertad, Petén. The second is shared between San Francisco, San Benito and La Libertad. The third from Coban, Alta Verapaz, and Ixcán, Quiché and the last in Santa Elena, San Francisco and Dolores, Petén.
In the past 3 years, the fiscal deficit rose from $ 595 million in 2008 to $ 1,226 million in 2010.
The rapid growth of public spending was financed with more debt and bonds. Experts consulted by El Periódico noted that this scenario will force the next administration to push for a tax reform.
"The president of Banguat, Edgar Barquin, is optimistic that the next fiscal deficit be reduced to 2.5 percent of GDP in 2012 and 2.3 percent for 2013 and within 5 years to reach 1.7 percent."
The Japanese loan will be used to improve the country's road infrastructure.
The cooperation agreement will be signed by President Alvaro Colom during his visit to Japan, the loan is for 25 years with a seven year grace period.
According to reports by Century XXI, "The visit of the Guatemalan president is focused on strengthening the economic, political and cooperation policies with Japan, one of the three major donors of the Central American country."
New regulations in El Salvador to tackle gang violence foster the development of regional measures to control and proscribe local gangs.
In order to prevent gang members from fleeing the country to avoid jail, especially to Guatemala and Honduras, these countries has activated extra security measures at their borders.
President Funes asked Guatemala and Honduras to join the fight against organized crime, which has been growing as drugs cartels associate with local gangs.
The renewal of the concession to Perenco was in doubt and Germany had offered to create a compensation fund to substitute it.
The contract, number 2-85, represents almost 98% of Guatemalan oil production and is unpopular among environmentalists. The extraction operations take place within the area of the Maya Biosphere Reserve, world renowned for its unique qualities and biological diversity.
The presidents of 5 Central American nations supported the readmission of Honduras into the Central American Integration System (SICA).
The “Special Declaration on Honduras”, signed by the presidents, also proposes speeding up Honduras’ return to the Organization of American States (OAS) and calls on the country to respect the basic rights of its citizens.
Mauricio Funes has an approval rating of 76%; he is followed by Ricardo Martinelli (66%), Laura Chinchilla (64%), Porfirio Lobo (60%), Alvaro Colom (50%) and Daniel Ortega (38%).
CID-Gallup unveiled its Central American public opinion poll for July 2010. It remarks that Funes remains the president with the highest approval ratings, and that Honduran president Lobo slipped from the third to the fourth spot, mainly because he is disliked by opposition and unregistered voters.
The Summit of the Central American Integration System (SICA) has started in El Salvador; its participants will discuss regional integration and security topics.
The presidents of Guatemala, Panama, Costa Rica, Honduras and El Salvador will take part in the activity.
“During the summit, officials will discuss how to strengthen the region’s democratic institutions, joint policies to mitigate natural disasters and reactivate the regional economy”, reported Prensa Latina, adding that “they will also push for social policies to address poverty and crime”.
Guatemala City's new public transport system uses pre-paid cards.
The first phase of Transurbano, a bus transportation system, will go live this week, in Zones 4, 9, 10, 12, 13 and 21 of Guatemala City, with 168 units.
Authorities commented that the objective of the system is to provide a comfortable, safe way of travelling around the city. It features 445 surveillance cameras, in addition to panic buttons in the units, which communicate directly to 175 police officers.
The temporary suspension announced by President Alvaro Colom won’t take effect immediately.
Representatives from Goldcorp, owner of the mine, remarked that they will continue operating while the investigation takes place.
PrensaLibre.com printed statements by President Alvaro Colom: “We answered to the CIDH’s request, but there is a due legal and administrative procedure. The company has its rights, and the accusations still have to be proven”.
Juan Alberto Fuentes Knight resigned to the Finance Ministry; he is unhappy with the little progress made in tax matters.
In a press release, Knight commented the positive things achieved in his tenure, which include the creation of a transparency vice ministry, four information websites, and improving Guatemala’s standing in the International Transparency Ranking by 12 spots.
The government announced it will impose precautionary measures against Marlin gold mine; on the same day the minister of Energy and Mines resigned.
The Inter-American Human Rights Commission (CIDH) had required the government to temporarily shut down the mine, owned by Goldcorp, as a precautionary measure to prevent environmental and human rights damages, while they investigate the matter.