The international loan approved by Congress will be used to improve the response capacities of the country's emergency services and health services, social protection services and agricultural recovery.
From a statement issued by the Congress of Guatemala:
With 84 votes in favor, the Plenary of the Congress of Deputies approved this Wednesday, Decree 15-2018, which authorizes negotiations for a Loan Agreement, for US $250 million, between the Government of Guatemala and the International Bank for Reconstruction and Development, IBRD.
As of March 2018, banks registered 6,230 agents and 8,668 establishments, 8% and 21% more than in the same month in 2017, while 337 branches were closed.
According to figures from the Superintendency of Banks, between the months of March 2017 and 2018, the number of banking agencies nationwide fell from 3,614 to 3,277, which is equivalent to a fall of 9%. This contrasts with the increases recorded in the number of agents and banking establishments.
For this year, growth in banking credit to the private sector is projected at between 6% and 9%, but the year-on-year increase registered up to March was only 4%.
Figures from Banco de Guatemala show that during the year 2017 credit to the private sector grew at a monthly average of 5.17%, and the lowest increases were reported in November and December when the amount increased compared to the same months of 2016 by 4.9% and 3.8% respectively.
The proposal to create an entity in Guatemala in which workers can save up to buy a home is under review by two law firms, and it is expected to be presented to the congress this year.
With the creation of the Housing Savings Institute (AVI by its initials in Spanish), which is based on similar experiences that have taken place in Mexico and Colombia, it is intended to include among the beneficiaries people who receive family remittances, workers in the informal economy and the self employed.
Banco de Antigua has announced the acquisition of the microcredit portfolio of the G & T Continental entity, which will continue to focus on consumer and corporate areas.
G & T Continental Bank reported that the operation is due to a restructuring process to meet the new technological trends in the financial market.
As of February 2018, banks in the system had assets totalling $41,343 million, which is 7% higher than the $38,655 million reported in the same month in 2017.
The Superintendency of Banks in Guatemala reported that at the end of February 2018, the bank's national currency assets totaled $29.921 billion, and assets in foreign currency amounted to $11.422 billion.
If the reforms to the Banking Law that are being discussed in the Congress are approved, cooperatives will have to start reporting information in their loan portfolios.
Legal initiative number 5157which is pending final approval, proposes, among other changes, including in the Credit Registration Information System (SIRC by its initials in Spanish) information from financial institutions that are not yet sending reports.
In an environment with a complex investment climate, between 2016 and 2017, credit to the private sector in Guatemala grew by 4%, less than the 6% registered between 2015 and 2016.
Authorities at the Bank of Guatemala (Banguat) reported that the recent judicial decisions on mining and hydroelectric projects have become the main factors that explain the environment of uncertainty that is affecting the country.
The new law on security interests promises small and medium-sized companies quick access to credit lines, as it simplifies procedures for constituting and executing guarantees.
Last week the Congress of the Republic,approved amendments to the Law on Secured Transactionsthat has existed since 2007 to facilitate access to bank loans. With the modifications, any transaction that has the effect of guaranteeing an obligation of the debtor with the creditor is typified as a security interest.
In Guatemala, companies will now have the option of accessing financing using their inventory, agricultural products, machinery, equipment and other assets as collateral.
The Congress of the Republic approved the reforms toDecree 51-2007, on the Law on Secured Transactions, which aims to regulate security interests in loans, non-monetary obligations, credit titles and titles representing merchandise, among other things. The changes will take effect one month after they are published in the newspaper Diario de Centroamérica.
Once the decree approved by Congress comes into force, companies can obtain liquidity by discounting their invoices receivable.
From a statement issued by Congress:
With 85 votes in favor, the plenary session of the Congress of the Republic approved Decree 1-2018, the Factoring or Discount Law, which encourages investment in the country.
In November, a year-on-year growth of almost 6% in consumer credit was reported, while in the same month in 2017 there was an increase of 13%.
Figures from the Superintendency of Banks show that the credit portfolio for consumption is the second most significant section of loans with a 30.2% share, after larger business loans that have a 54% share.
The Municipality of Villa Nueva is putting out to tender a structuring and administration service for a loan for up to $24 million with a trust guarantee.
Guatemala Government Purchase 7270186:
"The Structured Credit Administration and Structuring Service will be contracted for up to one hundred and eighty million Quetzales (Q 180,000,000.00) with a trust guarantee for the Planning and Development of the Municipality of Villa Nueva -FIDEVILLANUEVA-
The number of establishments that provide services under the model of banking agents grew 18% in the last two years, accounting for more than 8 thousand service points.
The number of establishments providing banking services in different parts of the country under this concept grew from 7,089 in September 2015 to 8,369 in September of this year, according to data from the quarterly Financial Inclusion report by Banco de Guatemala.
The Latin American Bank for Foreign Trade has granted Dos Pinos a syndicated loan of $100 million over five years, for three of the companies belonging to the cooperative.
The loan to Cooperativa de Leche Dos Pinos was structured as a "Club Deal" between Bladex, Banco General, S.A. and Banistmo, S.A., who acted as co-structurers.Bladex also serves as the Administrative Agent at the facility.