Guatemala: Public Debt Exceeds 23% of GDP

Up to August, the external and internal public debt amounted to $18.463 billion, equivalent to 23.4% of the country's Gross Domestic Product.

Monday, October 15, 2018

According to figures from the Ministry of Public Finance, in the last nine years the debt to GDP ratio has slightly varied, between 23.3% and 24.8%.

Regarding the country's indebtedness level, Abelardo Medina, senior economist at the Central American Institute of Fiscal Studies, said to that "... It is interesting to note that, although Guatemala reports the lowest level of debt in the region and one of the lowest in the world, the evaluation given by risk rating agencies does not reach investment level. This is a product of political instability but, especially, it is due to the limited size of its fiscal revenues."

See "The Unstoppable Public Debt"

The article reviews that "... Esther Pérez Ruiz, head of mission of the International Monetary Fund (IMF) for Guatemala, in her most recent visit recommended to the authorities to reinforce Value Added Tax controls, to improve the management of the office of large taxpayers and the use of fiscal information to improve tax compliance in the country".

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Honduras: Public Debt Up 3%

November 2018

At the end of the third quarter of the year, the total public debt of the country's Central Administration amounted to $11.002 million, 3% more than that reported in the same period of 2017.

During 2018, the total public debt balance of the Central Administration of Honduras reached US$11,002.8 million, which represents an increase of 0.13% with respect to the Second Quarter of 2018.

El Salvador: Call for Fiscal Responsibility

April 2015

Businessmen are asking for "... the establishment of concrete commitments and legal limits on the financial debts that the government may take out in the name of all Salvadorans."

From a statement issued by the Chamber of Commerce and Industry in El Salvador:

Approval of new issues of government bonds are not the solution to the problem of the government's lack resources, until there is a Fiscal Responsibility Law to address comprehensively the problem of sustainability of public finances, there is no guarantee that the government will not continue acquiring more debt which is not translated into improvements in the areas of security, education, health, infrastructure and other essential services for the population.

The State of Guatemala Could Issue Another $1.9 billion

November 2014

With the recent consent given by the Banguat for a new issuance of new debt totalling $1,917 million to finance the 2015 budget, the fiscal deficit could exceed 2.5% of GDP.

The private sector is not looking favorably on the approval given by the Monetary Board of the Bank of Guatemala for the possible issuance of $1.917 million in debt to finance part of the 2015 expenses, because the fiscal deficit would rise to levels above that considered acceptable in economic terms.

Honduras Raises Debt Issue to $1 billion

December 2013

If the additional tranche of $250 million approved by Congress is placed, the country's debt level will rise to over 40% of GDP.

Honduras's fiscal deficit will go from yellow to red alert if the government decides to issue $250 million more in debt bonds on the international market.