In Guatemala, Credit is Colombian

In the past two years, over $2 billion worth of financing for large enterprises in Guatemala has been provided by large Colombian banks.

Monday, March 26, 2012

The main participant is Bancolombia, which in 2010 and 2011 was involved in syndicated loans for over $1 billion, including the acquisition of Deorsa and Deocsa by Britain's Actis, the extension of Ingenio Magdalena and financing for Cementos Progreso and Cabcorp.

Luis Lara, president of the Banking Association of Guatemala, said that competition in foreign banks has always been strong, and that Colombian banks are among the most aggressive.

"The incursion of Colombian banks into Central America began with the purchase of the Agricultural Banks of El Salvador and Panama by Bancolombia, and was followed by Grupo Aval which acquired the subsidiaries of Banco de America Central (BAC / Credomatic) for $1.92 billion, and Davivienda who recently acquired subsidiaries of HSBC in El Salvador, Honduras, Costa Rica and Panama for $801 million, and it has not been ruled out they they will come to Guatemala," published

More on this topic

Costa Rica: Flexibility for Foreign Banks

March 2019

A reform to the Organic Law of the National Banking System proposes to allow foreign banks to choose between a corporation or a branch as the legal form to establish themselves in the country.

Project No. 21,292 called "Reform to Law No. 1644 - Organic Law of the National Banking System - Technical Sheet" was presented to the Legislative Assembly on March 8.

Central America: of 71 Banks, 32 are Foreign

February 2009

Central American banks accumulate $61.119 billion in assets, and 55% of its capital is of foreign origin

The blog "From Guatemala" publishes an analysis that describes the different degrees of internationalization of the banking systems of the region, from the Salvadorian banking system, where 95% of assets belong to foreign banks to the cases of the National Bank of Costa Rica and the Industrial de Guatemala, the largest banks of the isthmus, both based on local capital.

Assets of Central American banks growing by US$9 billion a year

June 2008

The assets of Central America's banks are growing by more than US$9 billion a year and the presence of foreign capital is growing in the sector.

At the end of last year, the total assets of the region's 76 banks came to US$58.8 billion, a 16.4 percent increase on 2006, and 47 of them were foreign controlled or had foreign participation in their capital.

Authorities want to equalize rules for foreign banks

April 2008

Costa Rica's Central Bank and its Finance Ministry intend to equalize tax conditions that apply to nationals who borrow from foreign banks.

Persons with loans owing to offshore banks (financial entities not domiciled in the country) do not currently pay the 15 per cent remission tax because these banks pay a special tax of 125,000 dollars.