Businesses Against Issuing $447 Million in Public Debt

The presidents of various Guatemalan unions have asked the Monetary Board not to authorize the issuance sought by the state.

Wednesday, July 10, 2013

According to representatives of the Chambers of Agriculture, Industry and Commerce associated with the Committee of Commercial, Industrial and Financial Associations (Cacif), this action "will affect the macroeconomy and increase the fiscal deficit."

"If the Monetary Board agrees to the bond issues, the country's commitments will increase by 7%, and this would jeopardize its ability to makes payments because it would not be complying with the tax collection target," said Jorge Briz, President of the Chamber of Commerce.

For his part, Andrés Castillo, industry representative, said that the provision would be irresponsible, while urging the Government to find other mechanisms to honor the debt.



More on this topic

Ecuador Seeks to Restore FTA with Guatemala

January 2020

During the recent visit of the Ecuadorian president to Guatemala, the intention to take up again the issue of the Free Trade Agreement between the two countries, whose negotiation was stalled years ago, was expressed.

As a result of the inauguration of the new Guatemalan government, Ecuadorian President Lenin Moreno visited the Central American country and took advantage of the occasion to meet with Guatemalan businessmen.

Monetary Board of Guatemala Authorizes Bonds

July 2013

The monetary authority has endorsed the issuance of $447 million in Treasury bonds, which will be used to settle debts with private contractors.

José Luis Agüero, president of the Guatemalan Chamber of Construction (CGC) believes that this is an important step to be able to honor the debt, and if Congress goes on to approve the issuance, they will become resources that will revive the economy.

Guatemala: Breaks Put On $432 million Bond Issue

November 2012

Doubts on the legitimacy of government debts to banks and construction companies, which would be paid with the tax revenues, have prompted the president's decision.

The Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (CACIF) expressed its concerns to President Pérez Molina.

Guatemalan Businesses Oppose Issuing More Debt

March 2010

The main business chambers of the country argue that issuing additional bonds will jeopardize macroeconomic stability and drive prices up.

Jorge Montenegro, president of Cacif, a committee that includes agricultural, commercial, industrial and financial associations, called on congressmen to act with responsibility.

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