The Spanish company which is to build and operate the new container terminal at Puerto Quetzal, is seeking $250 million from banks in Guatemala.
As explained by Juan José Suárez, CEO of Container Terminal Quetzal (TCQ), the advisory firm Everis, will be responsible for making the round of contacts with the banks which could finance the construction of a new dock and terminal in the Port of Quetzal (EPQ).
The world economic order is changing rapidly , while Guatemala's foreign relations are conducted with the same style as in the times of the Cold War.
An analysis of this issue by Reny Mariane Bake in Prensalibre.com, reviews the current status of Foreign Affairs in Guatemala, but this analysis also applies to other, but not all, countries in the region.
Rating agencies registration is now mandatory and banking institutions must be rated by one of them.
Rating agencies will have to submit their paperwork to the Superintendency of Banks (SIB). According to the chairman of the Monetary Board (JM) and the Bank of Guatemala (Banguat), Edgar Barquin, "among the amendments to the Law on Banks and Financial Groups is the addition that now banks must have a risk rating" .
The amendments to the Law on Banks and Financial Groups, which provide greater control for the country's financial system, are now in effect.
"One of the most important reforms is that the Superintendency of Banks (SIB), has the power to limit banks, finance companies and offshore entities in the distribution of dividends," noted an article in Prensalibre.com .
HSBC Latin America Holdings Limited, a wholly owned subsidiary of HSBC Holdings plc, has entered into an agreement to sell HSBC Bank (Panama) SA to Bancolombia SA for a total consideration of US$2.1bn in cash.
HSBC Latin America Holdings (UK) Limited, a wholly owned subsidiary of HSBC Holdings plc (“HSBC”), has entered into an agreement to sell HSBC Bank (Panama) SA to Bancolombia SA (“Bancolombia”) for a total consideration of US$2.1bn in cash, based upon estimated net asset value at completion of US$700m. The transaction is subject to regulatory approvals and other conditions and is expected to complete by the third quarter of 2013.
With an investment of $220 million the Rural Development Bank of Guatemala plans to start operations in Honduras in May 2013.
The announcement of the expansion of the bank towards its neighboring country came amidst the celebration of the General Assembly of Shareholders of the Bank for Rural Development.
"The Commission has already granted approval to enter the Honduran market.
While Central American businesses assume the costs of the bureaucracy associated with money laundering controls, big banks are granted a license to steal.
EDITORIAL
The United States has lost the moral authority in the fight against drug trafficking, and countries who suffer in the drug war, should taken that into account.
Grupo Bancolombia has agreed to acquire 40% of the ordinary shares of Grupo Financiero Agromercantil, with the possibility of acquiring a controlling interest in the medium term.
A statement of Grupo Bancolombia reads:
Grupo Bancolombia acquires 40% of Grupo Financiero Agromercantil of Guatemala – BAM - and strengthens its presence in Central America.
Fitch Ratings has projected higher profit margins for Central American banks.
The outlook on the ratings of banks in Central America and the Dominican Republic in 2013 is Stable. Strong balance sheets and ample liquidity levels that allow them to face external risks, continue to characterize most banking systems, according to Fitch Ratings.
Bank profits in 2013 will be driven by a reduced need for provisioning for bad loans, loan growth, the restructuring of assets and some efficiency gains,' said Rene Medrano, Senior Director of Financial Institutions at Fitch. 'Fitch anticipates that banking systems in the region will continue to grow at double-digit rates in 2013, except in the Dominican Republic and El Salvador where the pace is slower. The wide availability of funds combined with relatively low levels of banking in the region, suggest that banks could sustain growth for a longer period of time.
With the exception of El Salvador, bank lending is growing in Central American countries, strengthening in the years following the crisis and reaching double-digit growth in real terms.
From a report by Fitch Ratings:
Accelerating Growth: Central American bank lending has strengthened these countries in the years following the crisis, reaching double digit growth, even in real terms, with the exception of the Salvadoran banking system.
Thriving companies from the banking mining, sugar, rubber, call center, and palm oil sectors, have been the engines of the Guatemalan economy over the last 10 years.
An article in Elperiodico.com.gt reviews the characteristics of each of these sectors and the major players in each.
"At the beginning of this century, Guatemala had 34 banks that managed assets of about $5 billion.
From January 2013 financial institutions outside the U.S. will have to report on the accounts of citizens from that country, for tax purposes.
An analysis of the issue in an article in Capital.com focuses on Panama and risk management, but can be extrapolated to the entire Central American region.
“January 1 2013 will see the start of registration of agreements for compliance with FATCA for all entities in the financial sector, including insurance companies, brokerage houses, banks, credit unions and mutual funds that have U.S. customers, who must act accordingly. '
Congress has approved reforms to both the Law on Banks and Financial Groups as well as the Organic Law on the Bank of Guatemala.
A statement by the Congress of the Republic of Guatemala reads:
The Plenary of the Congress, approved Decree 26-2012
"Amendments to the Law on Banks and Financial Groups and the Organic Law of the Bank of Guatemala", which seeks to strengthen the safety of the banking network, mitigate risks associated with the financial crises and expand sources of funding from the Savings Protection Fund -FOPA.
The Superintendency of Banks in Guatemala is calling for public consultation on draft regulations for operational risk management for banking security.
According to an article in Prensalibre.com the intention is to regulate the minimum measures that banks must observe in the national system for managing operational risk in areas such as technology security, vaulting and customer service, among other things.
In order to improve the bank’s financial position, the Guatemalan government has transferred $12.7 million and expects to disburse another $6.3 million in the short term.
Pavel Centeno, the finance minister, said the decision was made this year to capitalize on the effects of the fiscal deficit not increasing in the coming year 2013.
Regarding the issue Victor Mancilla, Chief Superintendent of Banks, said that because of the effects of absorbing banks in the past, the CHN became weakened because of the portfolio management that these institutions received and it needed to incorporate these reserves. 'The government is giving its support so that these reserve can be constituted, because of the impaired portfolio, a result of these operations.' ", reported Elperiodico.com.gt