Amendments to securities regulations are being prepared in order to allow local stock brokers to buying shares of listed companies in developed markets.
This change in regulations and operational infrastructure will give access to the purchase of shares of international companies listed on stock markets such as New York.
The National Stock Exchange will implement a system of mass placement of securities in order to encourage the registration of emissions from private companies and the arrival of more investors.
The strategy will focus on standardizing the securities that are issued in the primary market so that they can then be traded in the secondary market and in this way give them greater marketability and encourage the participation of more investors.
The reduction in interest rates generated by increased liquidity in the market lowers the cost of financing for the private sector.
Representatives from the banking sector in Guatemala assert that the reduction in interest rates generated by the increased liquidity in the market, lowers the cost of financing for the private sector.
"La National Stock Exchange (BVN) indicates that during the last negotiations for Treasury bonds the yield curve reflects a change, mainly because of financial liquidity in the domestic market as well as an exemption from income tax on the interests of those certificates. "
In 2013 $334 million were traded in the primary market in bond debt securities issued by Guatemalan companies.
Figures from the National Stock Exchange (BVN) reveal that during 2013 $334 million worth of bonds were traded. Of that total, 25% were in dollar bonds, the rest were denominated in quetzals.
"... the volume of trade covering activities by industry, banking, agriculture, trade and finance, is growing," said Rolando San Román, CEO of the BVN.
Holders of government bonds will no longer pay 10% tax on the returns generated.
This was established after the reform of the Budget Code of Guatemala, which regulates share certificates of the Republic.
"The tax was an obstacle to developing the secondary market because banks, which are major holders of these securities, could not sell to individuals, because rather than making money they could lose them some," said Rolando San Román , general manager of the National Stock Exchange (BVN).
During the first six months of 2013 the country received $700 million from exports of sugar.
Sugar sales during the first half gave a big boost to other exports. According to the Bank of Guatemala (Banguat), up to June exports reported a total of $5.298 billion, up 1.6% from the income generated in the same period in 2012 which was $5.215 billion.
According to Armando Boesche, manager of the Sugar Association of Guatemala (Asazgua), the country saw a record harvest and last September and at the beginning of 2013 it was possible to quote a good price for the product on the stock market. "I hope that prices don't drop because different producing countriessuch as Mexico and Brazil have also had plentiful crops," he said.
The total amount of stock transactions increased by 33.6% in 2012 compared to the previous year.
Elperiodico.com.gt reports that "According to Paulo de León, consultant at the Central American Business Intelligence (CABI), the volume of transactions is reaching a significant amount, and is evidence of a recovery after several very difficult years. '
In 2012 the market for corporate debt had $262 million in circulation which is a 20.20% increase compared with 2011.
Prensalibre.com reports that Rolando San Román, general manager of the National Stock Exchange (BVN by its initials in Spanish), states that "this type of leverage offers better interest rates for companies than is provided by the banking system."
During 2011 operations on the National Stock Exchange (BNV In Spanish) grew by 65% compared to the previous year, with participation from all sectors: government debt, corporate bonds and repos.
The general manager of the BVN, Rolando San Román, said trading volumes denote a significant increase in all markets, from corporate to government debt or repurchase and resale agreements (repos).
The National Stock Exchange was designated to issue ISIN codes (Securities Identification Number) and CFI (Classification of Financial Instruments).
Notes and shares issued by local companies will now be visible for global investors after the country obtained an international identification code for securities.
So far, Guatemala had not been authorized to designate such codes, so Standard & Poors assigned the codes for securities in the country.
$31.72 billion were traded in the first 11 months of 2009, 40.4% more than the same period of 2008.
From January to November 2008 $22.58 billion were traded, according to data from Guatemala's National Stock Exchange (BVN).
"Martha Eugenia Coronado, BVN's marketing sub-chief, said the increase happened because there is a cultural shift, companies now see the Stock Market as a means of getting financing, and both investors and issuers gain more confidence in the system", reports Prensalibre.com.
The Bank of Guatemala will change the methodology to include all foreign currency exchange transactions.
At present, the entities participating in the Institutional Foreign Exchange Market only report to the Bank of Guatemala when the transaction is greater than or equal to $50 thousand to calculate the reference exchange rate.
According to an article in elperiodico.com.gt, as of May 11, by a resolution of the Monetary Board, banks must report all daily foreign currency exchange operations.
A new regulation will allow Guatemalans to buy international securities directly.
The Guatemalan Registry of Securities and Goods published regulations for the International Quotes System (SIC) which is part of the amendments to the Securities Act (Ley de Valores).
The Manager of the National Stock Exchange told the Prensa Libre that "the regulations will allow Guatemalans to buy shares in developed markets," and that for the International Quote System to start operating, “systems, contract, agreement and regulation infrastructures will have to be developed; and it will be operational in several weeks."