Guatemalan Banks make it tougher to get credit

The president of the Bank of Guatemala has warned about the situation of the banks in country, which have exhausted their credit expansion capability.

Wednesday, August 6, 2008

This comes after two years during which their portfolios grew more by than 30%. "They need to be capitalized," Antonieta de Bonilla was reported as saying.
The Guatemalan economy is going through a slowdown as a result of the decrease in general consumer spending mainly due to the increase in the rate of inflation which by midyear had reached 7.54%. Even though the Bank of Guatemala decided to raise the interest rate to 7.25% as a corrective measure, this on the other hand represents further restrictions on consumer spending.

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