On the same day of its entry into force, the employers' union filed a constitutional motion against it, arguing that it adversely affects the freedom of the financial market.
For the second time a motion has been filed to temporarily suspend the enforcement of the law, with arguments once again made that the relevant processes were not followed and that its application will have adverse effects on the Guatemalan financial market.
The decision was made in response to economic activity, family remittances and credit to the private sector showing dynamism, and the fact that inflation remains within the target.
From a statement issued by the Bank of Guatemala:
The Monetary Board (MB), based on a comprehensive analysis of the external and internal situation, after reviewing the Inflation Risks Balance, decided to keep the level of the leading monetary policy interest rate at 3%.
The growing political paralysis is accentuating problems in the country´s accounts, something the government is trying to compensate by increasing indebtness.
In light of the Monetary Board´s approval of another issue of treasury bonds, worth $1.4 billion, criticism has arisen from economic analysts, who criticize the debt as an easy solution chosen because of an unwillingness to increase revenue and control rises in spending.
Guatemalan banks are now allowed to invest in securities issued by private domestic firms in the foreign market.
The Monetary Board (JM) has approved an amendment to an article of the Regulations of the Law on Banks and Financial Groups, allowing banks to invest in corporate bonds that are issued by national companies and which are traded in foreign markets.
The Monetary Board, at its meeting today, decided to maintain at 5.25% the monetary policy leader interest rate, based on a comprehensive analysis of the external and internal situation, after being made aware of the Inflation Risk Balance .