Legal Certainty Falters in Guatemala

Businessmen have expressed concern about the serious consequences for the country that could arise from recent court decisions ordering the suspension of mining and hydroelectric projects.

Tuesday, May 10, 2016

From a statement issued by the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Committee (CACIF):

CERTAINTY FOR LEGAL INVESTMENT IS AN INDISPENSABLE CONDITION OF THE RULE OF LAW

Today more than ever, Guatemala needs investment and a competitive environment that allows for, respecting the legal regulations and dignity of Guatemalans, the creation and maintenance of jobs, development of people and their families and the generation of financial resources for the State in order to fulfill its duties of subsidiarity.

Part of this development relates to the rational and responsible use of natural resources and having a significant energy capacity. As an example, an increase in generation capacity, a domestic energy matrix that depends on a high percentage of renewable sources, reduced energy costs by 36%, and increased electricity coverage by 95%, being a clear testimony of what can be achieved with a stable legal framework and investment capacity and entrepreneurship on the part of private enterprise.



More on this topic

Utility Services Not Accompanying Industrial Growth

June 2013

In Costa Rica the industrial zone of Coyol has become the new center of attraction for investments, even though it lacks adequate road and water infrastructure.

A good example of the growth in the area is by Grupo Condal, which plans to invest $14 million in this region with the construction of a logistics park measuring 15,000 square meters.

New Tax Puts $300 million Investment In Doubt

July 2011

A new security tax, which aims to raise $80 million, calls into question a $300 million investment and could result in the loss of 15,000 jobs.

This is according to Jesus Canahuati, Honduran business leader and former president of the Honduran Maquila Association, who added that "several investors who were ready to come to the country have now halted their plans," due to uncertainty generated by the new tax.

Cost of Energy is Vital to Investors

July 2011

Nicaragua is the country with the highest electricity costs in the region, and an increase of 24% has been announced for January 2012.

The issue was discussed by the Nicaraguan Foundation for Economic and Social Development (FUNIDES), which emphasized the negative impact on investment in the country.

El Salvador: Between Chile and Venezuela

November 2009

It seems that not everyone in Funes' Government shares his objective of making investors feel secure.

Referencing policies implemented by Chilean governments, Rafael Castellanos wrote in Laprensagrafica.com: " 1) It is necessary to enlarge the social security network and 2) To reduce poverty we need growth, and to grow we need to attract foreign investment, and for this we need to make investors feel safe, we need them to be sure that the Government won't change the rules at any moment, in the long term required for obtaining returns over investments. Those are two key pillars for Chile's success".

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