Guatemala eases curbs on money

The monetary restrictions that hit the Guatemalan economy in recent months is no longer severe and monetary indicators are back in line with the government's plans, Finance Minister Juan Alberto Fuentes said in an interview.

Friday, May 16, 2008

The government's decision to release more budget funds and interventions by the central bank, Banguat, have helped to restore liquidity, Fuentes added.
As the government kept a tight grip on funds early in the year, it built up a surplus of 1.6 billion quetzals (US$215 million) at Banguat. The quetzal strengthened against the dollar until Banguat withdrew from the market in recent days, when the dollar recovered some of its lost ground.
As a result of the lack of liquidity, several banks put a freeze on new credits.

More on this topic

Honduras: Historical Growth for Banking Liquidity

August 2009

Between January and July 2009, the liquidity of Honduran Banks grew 242%, from $1.05 billion to $2.45 billion.

60% of available funds are in Lempiras, the national currency, while the remaining 40% are in dollars.

Such growth was a result of monetary policies by the Central Bank of Honduras, who increased the amount of money in the economy by removing some obligatory investments on deposits, and reducing and eliminating reserve requirements.

$290 million for Guatemalan banks

January 2009

The Monetary Board extended the term of the money table for domestic banks up to May 31. reports: "The measure allows banks to get funds via repurchase agreements that were authorized on 1 November 2008 and which would have expired on 31 January 2009.

The option of opening a window to provide liquidity in dollars came from the decision of the correspondent banks to cut or reduce lines of credit to local banks."

IDB approves $500 million for Costa Rica

December 2008

The funds will be used to deal with the possible lack of liquidity next year due to the international financial crisis.

"This loan will inject Zuniga, who also added that with the funds from the IDB the authorities are seeking to provide "sustainable growth" for the Costa Rican economy.

When bank liquidity decreases

August 2008

The initial alarm signal is when a bank has no liquidity and begins to offer its savers, especially newcomers, interest rates that are far above those offered by other banks.

They also turn to borrowing from other commercial banks and the Central Bank. During the Great Depression (1929-1933), banks in the United States and in Guatemala had liquidity problems.

 close (x)

Receive more news about Banking

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones

Citrus Extract

CitroBio is a citrus extract wash for use throughout the entire food industry.
CitroBio is a citrus wash for sprouts, fruits,...

Stock Indexes

(Nov 17)
Dow Jones
S&P 500


(Nov 17)
Brent Crude Oil
Coffee "C"