After multiple consultations, the Superintendency of Banks announced that virtual currencies or assets such as Bitcoin, Ethereum, Ripple and other similar ones, are not legal tender in the country.
The Superintendency of Banks, derived from the different consultations made by economic and financial agents regarding the use of virtual currencies or assets, known as cryptocurrencies, informs the population that in accordance with the Monetary Law, the monetary unit of Guatemala is the Quetzal and only the Bank of Guatemala can issue banknotes and coins within the territory of the Republic, therefore virtual currencies are not legal tender in the country, explains an official statement.
The Congress approved by articles and final wording the Leasing Law, a legal framework that establishes mechanisms for people to lease with option to purchase.
With 101 votes in favor, the Plenary of the Congress of the Republic approved Decree 2-2021, Leasing Law, which regulates leasing with option to purchase in the Guatemalan legislation, informed the legislative body.
Last December 2, the new Credit Card Law proposal received a favorable opinion from the Economy Commission of the Guatemalan Congress, and now it should be discussed in the plenary session.
Implementing a mixed system of interest rates composed of a fixed one with a contract for a determined time and another variable agreed between the account holder and the issuer, is one of the proposals that are discussed in the Congress of Guatemala.
The proposal for two interest rates was presented by the Instituto de Investigación y Proyección sobre Economía y Sociedad Plural (Idies), before the Congressional Economic Commission, in charge of discussing the proposals for changes to Credit Card Law 5544.
In Guatemala, companies report to have lost several credit opportunities because the bill presented to Congress in 2015 has not yet been approved.
The bill that is being analyzed in Congress and is in third reading since May 2016, establishes the legal framework for entities such as banks and financial companies to include leasing in their product portfolios.
Almost three years after its approval, the Microfinance Law in Guatemala still does not have a regulation defining the way in which institutions dedicated to this activity should operate.
The Microfinance Law approved in May 2016, is still waiting for the regulations that will allow its full application. This situation prevents entities seeking to operate in this activity from registering with the Ministry of Economy, since there is no regulation determining how to do so.
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.
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.
The new law prohibits banks and financial institutions from implementing abusive practices in order to manage debt collection.
From a statement issued by the Congress of Guatemala:
With 108 votes in favor, Congress deputies approved amendments to the Banking Act, with which it prohibited harassment and abusive collection practices on the part of the lenders.
The law regulates the establishment, licensing, merger, functioning, operations, services, suspension and liquidation of Savings and Loans Microfinance and Investment and Credit Microfinance.
From a statement issued by the Ministry of Trade:
Guatemala, April 13, 2016. The Congress approved on Tuesday 12 April Initiative 4791: Microfinance Institutions Act and Nonprofit Microfinance Entities , which correspond to Decree 25-2016.
The Superior Court has ordered the temporary cancellation due to lack of a ruling from the Bank of Guatemala, and the fact that Congress gave approval without having a majority, as stipulated by law.
The Constitutional Court (CC) has provisionally suspended the Credit Card Act, which came into force on March 8. Gloria Porras, president of the CC, told Prensalibre.com that one of the major failings was that Congress did not pass the Law with 105 votes, which is defined as a majority.
On the same day of its entry into force, the employers' union filed a constitutional motion against it, arguing that it adversely affects the freedom of the financial market.
For the second time a motion has been filed to temporarily suspend the enforcement of the law, with arguments once again made that the relevant processes were not followed and that its application will have adverse effects on the Guatemalan financial market.
The appeal filed against the law establishing ceilings on interest rates charged by card issuers has been rejected by the Constitutional Court.
The Constitutional Court (CC), rejected the appeals filed against the Credit Card Act , presented in January by the Association of Banks of Guatemala (ABG), the Association of Card Payment Issuers (AEMPG) and Deputy Ronald Arango, reported Republica.com.gt.
Unconstitutionality lawsuits filed by banks and the Association of Payment Card Issuers may postpone the enforcement of the law, which was scheduled for March 2015.
The actions claiming unconstitutionality argue that when approving the controversial law, Congress did not follow the relevant processes, including the inclusion of the opinion of the Monetary Board on the part of representatives.