Arguing that it does not comply with the standards on transparency and exchange of information for tax purposes, the OECD evaluated Guatemala negatively and recommended working on direct access to taxpayers' banking information.
As planned, following the temporary suspension by the Constitutional Court (CC) of the article of law facilitating access to taxpayers' bank information, the Organization for Economic Cooperation and Development (OECD) decided to include Guatemala in the list of countries that do not comply with their fiscal information commitments.
At the end of June in Guatemala, credit to the private sector registered a 7% year-on-year growth, which is explained by the upturn in mortgage and consumer loans.
Figures published by representatives of the Banco de Guatemala specify that at the end of the first semester of the year, the total credit to the private sector reached $26.571 million, amount that is 6.9% higher than that reported a year ago.
In its next evaluation, the OECD could lower Guatemala's rating, because in August last year access to bank information with a court order was suspended, which could lead to an increase in the credit price.
The rise in microcredits, consumer loans and the construction sector contributed to the 7% year-on-year increase reported in April 2019.
Data from the Bank of Guatemala show that between April 2018 and the same month of 2019, credit to the private sector in the country increased from $24.687 million to $26.534 million, which is equivalent to a 7.4% increase.
The change from stable to negative in the classification perspective of foreign currency debt would not have, at least in the medium term, significant effects on the Guatemalan financial system.
On April 11, 2019 Fitch Ratings ratified the long-term foreign currency default rating of "BB", but changed the outlook from stable to negative.
The rating agency argued that the revision of the Negative Perspective of Guatemala's debt rating reflects political tension and greater uncertainty in the agents, in addition to a constant erosion in the low tax collection.
From May 2019, foreign customers will have to declare to local system banks that their funds meet their country's tax requirements.
The Superintendence of Banks of Panama (SBP) approved Agreement 02-2019, which implements the recommendations of the Financial Action Task Force, which consists of expanding the required due diligence measures of banks with their customers.
Limiting the fees charged in Costa Rica and establishing a law that defines market limits in Guatemala are part of the attempts being made in the region to regulate the use of credit cards.
A law proposal presented last January before the Legislative Assembly of Costa Rica, aims to regulate the percentage of the commission paid by businesses for credit or debit cards.
At the end of 2018, credit granted to the business sector in Guatemala registered a 7% increase over December of the previous year.
Figures from the Superintendence of Banks specify that up to December 2018 the credit portfolio reached $23.064 million and investment in securities $11.324 million, which compared to 2017 is equivalent to 6.8% and 11.3% increases, respectively.
After the law seeking to regulate the credit card market in Guatemala was declared unconstitutional, a new proposal was presented.
The Credit Card Law that was declared unconstitutional at the beginning of 2019, entered into force on March 8, 2016, however, after the business chambers, card issuers and the Bank of Guatemala filed legal appeals before the Constitutional Court (CC), was suspended on March 31 of that year.
After 14 appeals filed, the Guatemalan Constitutional Court declared unconstitutional the law that attempted to regulate the credit card market in the country.
The Credit Card Law became effective on March 8th, 2016, however, after the business chambers, card issuers and the Bank of Guatemala filed legal appeals before the Constitutional Court (CC), it was provisionally suspended on March 31st of the same year.
Between November of this year and the same month of 2017, the portfolio of loans granted by Guatemalan banks to the private sector increased 6%, which is caused by the behavior of loans in dollars.
According to figures from the Bank of Guatemala, between November 2017 and the same month in 2018, total credit to the private sector increased from $24.338 million to $25.877 million.
On November 14th, Banpro Grupo Promerica issued $200 million in bonds on the international market for a six-year term under the 144A format.
The bank announced that the issuance was made by Promerica Financial Corporation (PFC), its main shareholder, and that the issue was structured by Bank of America Merrill Lynch and Credit Suisse.
Ramiro Ortiz Mayorga, chairman of the board and CEO of Promerica, explained to Elnuevodiario.com.ni that "...
In the eighth month of 2018, credit granted by Guatemalan banks to the private sector totaled $26,168 million, 5% more than was reported between January and August of 2017.
The latest figures from Banco de Guatemala show that credit to the private sector in the eighth month of 2018 grew by 4.8% with respect to the same month in 2017, rising from $24.970 million to $26.168 million.This increase was below the increase of 5.1% registered between August 2016 and 2017.
Up to July 2018, credit granted by Guatemalan banks to the private sector totaled $26.06 billion, 4.5% more than was reported in the same month in 2017.
The most recent data from Banco de Guatemala shows that credit to the private sector in the seventh month of 2018 grew by 4.5% compared to the same month in 2017, rising from $24.611 billion to $24.942 billion.This increase was below the increase of 5.3% registered between July 2016 and 2017.
Up to May 2018, credit granted by Guatemalan banks to the private sector totaled $25.725 billion, 4% more than was reported in the same month in 2017.
According to figures from Banco de Guatemala, credit to the private sector up to May 2018 grew by 4.1% compared to the same month in 2017, rising from $24.611 billion to $25.725 billion.This increase was below the 8% increase recorded between the same months of 2016 and 2017.