Warnings are being issued of a possible rise in the cost of credit if the government finances its spending with bonds issued in the local market.
Elperiodico.com.gt reports: "If Congress authorizes for the next fiscal period the issuance of $1.282 billion in bonds to finance public spending, as the executive branch plans, credit to the private sector could be affected ... ".
The struggle between political parties paralyzes Congress which is not approving the legislation necessary to keep the economy competitive.
According to the Foundation for the Development of Guatemala (Fundesa), if you want to improve competitiveness, job creation and economic growth, a series of initiatives which have been stalled in Congress since January must be passed, including the law to create a national system to regulate competition and temporary work.
Guatemala´s BB+ sovereign risk rating and stable perspective, which is so close to the desired “Investment Grade,” is facing four threats.
According to an article by C.Véliz and J. Gramajo in Sigloxxi.com, Mauricio Choussy, the director of Fitch Central America, notes that four weaknesses persist in the country: “Low tax revenue, weak social indicators, social instability, and high levels of delinquency.”
Fitch Ratings has pointed to Guatemala's macroeconomic stability and the low level of public debt to give the country an overall country risk rating of BB+, with outlook stable.
But it said the credit area was weak, citing factors such as low rates of tax collection, high levels of poverty and inequality, and precarious social and governability indicators. The credit rating given was BBB-.
I have six building lots in the Punta Leona Resort ready for construction. I am looking for a partner to provide financing and or construction. Wanted partner for financing and/ or construction in the...