Monetary Board of Guatemala Authorizes Bonds

The monetary authority has endorsed the issuance of $447 million in Treasury bonds, which will be used to settle debts with private contractors.

Thursday, July 11, 2013

José Luis Agüero, president of the Guatemalan Chamber of Construction (CGC) believes that this is an important step to be able to honor the debt, and if Congress goes on to approve the issuance, they will become resources that will revive the economy.

"There is enough room for borrowing," said Deputy Finance Minister, Dorval Carias, because the level of debt would rise to 25% of GDP, and would be far from the 40% which would be the level which would affect the macroeconomic situation.

Elperiodico.com.gt reports: "With the extraordinary issue we would get out of the debt which up to 2010 has been held with contractors for works that were not paid for and were executed by the Directorate General of Roads, the Road Maintenance Fund (Covial) and the now defunct National Peace Fund (Fonapaz) ".

The measure had been challenged by various business groups, who asked the Monetary Board not to approve the issuance.



More on this topic

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.

Businesses Against Issuing $447 Million in Public Debt

July 2013

The presidents of various Guatemalan unions have asked the Monetary Board not to authorize the issuance sought by the state.

According to representatives of the Chambers of Agriculture, Industry and Commerce associated with the Committee of Commercial, Industrial and Financial Associations (Cacif), this action "will affect the macroeconomy and increase the fiscal deficit."

Guatemala: Monetary Board Authorizes Bond Issue

October 2010

The Monetary Board (JM) authorized the issuance of $ 210 million in treasury bonds by the Ministry of Finance.

If approved by Congress, the Government's deficit this year would reach 3.4% of GDP.

Elperiodico.com.gt reports, "Julio Suarez, vice president of Banguat, announced that JM endorsed his opinion of an increase in public debt, although representatives of the private banking and corporate sectors opposed it."

Guatemala Could Issue 77% More Bonds

April 2010

The Finance Commission of the Legislative approved to issue the bonds and increased them to $874 million.

Originally, the Executive had proposed to issue debt for 4500 million quintals ($562 million), but this figure was increased by the Finance Commission.

The project was conceived to fund the State’s budget, and will now be discussed by Congress.

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