Growing Worries Over Guatemala's Public Debt

Public debt has grown rapidly from $2 billion in 1998 to $13 billion in 2013.

Thursday, November 7, 2013

This was explained by the president of the Bank of Guatemala, Edgar Barquín, who recommends establishing a debt policy in the country. "In the draft budget for 2014, the amount of debt accumulated by Guatemala will reach $14 billion," reported Prensalibre.com.

"We are reaching a position in which the debt ratio must be studied," says Barquín.

He said that in order for the country to achieve an investment grade rating by the rating agencies, government borrowing should not exceed 20% of GDP, 14% of the tax burden and the fiscal deficit should stand at 1%. However, the debt has reached 25% of GDP, 10% of the tax burden and there is a fiscal deficit of 2%.



More on this topic

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The need to borrow every month in order to pay current account expenses is the main cause of the continuing increase in the central government's debt to GDP ratio.

At the end of 2014, total public debt, which includes the Central Bank of Costa Rica and other public sector entities represented 58.6% of all production.

Request for Tax Rise in Guatemala

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The president of the Bank of Guatemala has stated that in order to sustain the fiscal debt, the tax burden in the Guatemalan economy will have to rise from 11% today to 14%.

An article on Lahora.com.gt reports that, Edgar Barquín president of the Bank of Guatemala, said "...

Guatemala: Public Debt Could Reach 25.5% of GDP

January 2014

The fiscal deficit of 2.3% proposed for the 2014 budget would cause such an increase in the Guatemalan public that could put monetary policy at risk.

In 2014 Guatemala's public debt will increase and it will be approximately $14.670 billion, equivalent to 25.5% of the country's GDP, explained Edgar Barquín, president of the Bank of Guatemala.

A Public Debt Law For Guatemala

September 2013

In order to maintain a deficit reasonable and economically sound development in the next few years policies on borrowing are needed.

This was the recommendation of the president of the Bank of Guatemala, Edgar Barquín, in an interview with Joel Maldonado from S21.com.gt. "...

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