In Guatemala, Banco de Inversión S.A. acquired 60% of the asset portfolio of Financiera de Occidente S.A., which was suspended in December 2019.
On December 13, 2019, the Monetary Board reported that because management practices were detected that put its solvency and soundness at risk, it decided to suspend the operations of Financiera Occidente S.A., an entity that at that time represented 0.35% of the total assets of the local banking system.
Their suggestion is to facilitate the acquisition of insurance policies by simplifying the current insurance contract forms required by the Tax Administration.
Insurance companies made these and other proposals during the XXXIV Hemispheric Insurance Conference which is taking place in Antigua Guatemala.
"One of the proposals is to simplify the Special Inspectorate (IVE) Tax Authority forms which aim to prevent money laundering," noted an article in Prensalibre.com.
A joint venture between IDB and financing company “Financiera de Occidente S.A.” will support the domestic rural forestry industry.
Luis Alejandro Mejía is the head of Eco-Business at Occidente Financial Group. He was quoted by Elperiodico.com.gt as saying that “this program is valuable because the resources donated by IDB will be used to create financial products with preferential rates”.
The Inter-American Investment Corporation signed an agreement with the Eastern Financial Company to channel $3 million in credit for the companies.
Steven Reed, sub general manager of t he IIC, said that the agreement is very important due to the financial crisis and reaffirms the IDB's commitment to supporting the region during difficult times.
Pedro Aguirre, president of the Eastern Financial Company, highlighted the fact that they still do not know what the effects of the biggest crisis ever seen will be, but that it "will depend on what we do as a productive sector to generate well-being and productivity in the country."