Experts in the field believe that trying to stabilize prices of basic goods is a short-term measure which is ineffective and unnecessary at a time when inflation is under control.
Mario García Lara, former director of the Bank of Guatemala (Banguat) told S21.com.gt that "... It is a measure which any government can utilize, but only in cases of emergency and you can expect the desired effects in the short term 'but [there are] very ephemeral' ... Inflation is under control and it is a phenomenon that is not controlled with these agreements, but with monetary policy measures. "
The president of the Bank of Guatemala has stated that in order to sustain the fiscal debt, the tax burden in the Guatemalan economy will have to rise from 11% today to 14%.
An article on Lahora.com.gt reports that, Edgar Barquín president of the Bank of Guatemala, said "... in order to maintain economic stability and ensure social spending for the benefit of the population, the level of taxes needs to rise to 14 percent of GDP this year. According to the official, rating agencies consistently report that one of the weaknesses in Guatemala, in financial terms, is the low level of taxes."
For the first time in April the country received $490 million in remittances, equivalent to 9% of the total amount received in 2013.
Foreign exchange earnings from remittances reported by the Bank of Guatemala (BANGUAT) for the period January to April 2014 was $1.73 million, exceeding by 9% the amount received in the same period in 2013.
In order to maintain a deficit reasonable and economically sound development in the next few years policies on borrowing are needed.
This was the recommendation of the president of the Bank of Guatemala, Edgar Barquín, in an interview with Joel Maldonado from S21.com.gt. "... The country lacks a policy on public debt. The governments of the past 25 years have been indebted to the nation according to what they need for the next year and have not had a foundation for the medium and long term," he said.
Rating agencies registration is now mandatory and banking institutions must be rated by one of them.
Rating agencies will have to submit their paperwork to the Superintendency of Banks (SIB). According to the chairman of the Monetary Board (JM) and the Bank of Guatemala (Banguat), Edgar Barquin, "among the amendments to the Law on Banks and Financial Groups is the addition that now banks must have a risk rating" .
The aim is to provide the Tax Authority with access to taxpayers bank accounts in order to comply with parameters of the OECD.
Guatemalan ministers have agreed to changes to bill 4326 to amend the Tax Code and the Law on Banks and Financial Groups.
This initiative aims to facilitate access to information relating to taxpayers bank accounts by the Tax Authority (SAT). As it stands, the bill does not meet standards set by the Organization for Economic Cooperation and Development (OECD) in order for it to leave the gray list of tax havens.
The Guatemalan Banking Superintendent (SOB) set in $3,000 the limit for transactions in cash without justifying the origin of the funds. From October on, the people that carry out money transfers over $3,000 should justify where the money comes from.
"The purpose of limiting the income of currencies in cash in the national financial system pretends to detect, in a more effective way, any monetary transaction that can have some criminal origin", indicated Edgar Barquín, holder of the SOB, to Elperiodico. com. gt
The Guatemalan Banking Regulator (SIB) has opened a new information office in the Quetzaltenango region.
The new office's objectives will be to, "supervise the financial system in order to improve economic stability, gather intelligence and information relating to money laundering, as well as provide financial education and other services to the public," the banking regulator, Édgar Barquín, told Prensalibre.com.
The International Monetary Fund (IMF) report sheds a positive light on the country's macroeconomic situation and the stability of its financial system.
A staff team from the International Monetary Fund (IMF) visited Guatemala during August 17-26, 2010 to conduct the fourth and final review of the Stand-By Arrangement approved in April 2009. The mission met with Minister of Finance Edgar Balsells; Central Bank Governor María Antonieta de Bonilla; Superintendent of Banks Edgar Barquín; other senior government officials, and representatives of the private sector.
The Presidential Commission against Money Laundering and Terrorism Financing will be composed of the Vice President, the Chancellor, the Minister of Interior, the Presidency’s Strategic Intelligence Unit, the Superintendence of Tax Administration (SAT) and the Superintendence of Banks (SIB).
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