Loans in Guatemala: Making Procedures More Flexible

The Monetary Board approved the changes to the Credit Risk Regulations, which were proposed by the Superintendence of Banks and seek to simplify the requirements for loans not exceeding $160,000.

Friday, August 14, 2020

In this scenario of economic crisis resulting from the outbreak of covid-19, the objective of the endorsed modifications is to favor SMEs and individuals to gain access to credit lines offered by commercial banks.

See "Financial Services: Business Potential in Central America"

Sergio Recinos, president of the Monetary Board and the Bank of Guatemala, explained to Prensalibre.com that "... the idea is that they are no longer subject to all the requirements for loans over Q1 million ($160,000) and the criteria is left to each institution's Board of Directors and they will determine what the basic requirements will be, but in general they are more flexible."

Luis Lara Grojec, president of the Guatemalan Banking Association (ABG), said that "... this measure will come to encourage entrepreneurship and financing for SMEs. The new provisions for loans under $160,000 will have fewer requirements to help and speed up applications."

Also see "Credits: Potential Market in the Region"

CentralAmericaData reports that at the end of the first semester in Guatemala, more than 500 thousand consumers are trying to access personal credit via Internet.

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