For this year, the government of Guatemala plans to issue an amount equivalent to $2.392 million, which includes new issues and titles that will expire soon and will be awarded again.
According to information from the Directorate of Public Credit, an entity of the Ministry of Finance (Minfin), during 2020 new issues will reach $ 1.845 million and collections or roll over, titles that expire but will be re-issued in the market, will be of $547 million.
The authorities that will assume the government in 2020 in Guatemala could evaluate options to tax temporarily some sectors, however, there would be a risk that these taxes become permanent.
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.
Authorities from both countries agreed to work on the unification of their stock markets, starting with the issuance of a quota of Guatemalan subsidized debt directed to Salvadoran investors.
Representatives of the Guatemalan Ministry of Finance and the Ministry of Finance of El Salvador informed that before the end of this fiscal year, the Guatemalan subsidized debt will be approximately $13 million.
In Guatemala, the regulations governing the tariffs to be applied to users, administrators and economic zones have come into force as part of the new legislation on Special Public Economic Development Zones.
The tariffs that will be applied according to the categories established in the regulation, published in the Diario de Centroamérica on June 28th, were effective.
For the rest of the year, the Guatemalan government plans to award Treasury Bonds for an amount equivalent to $136 million, which will be issued through an electronic system and physical title.
Days ago the Ministerio de Finanzas (Minfin) informed that the global amount awarded of Treasury Bonds of the Republic of Guatemala up to date, including those made through public tenders and auctions ascended to Q.17,277.9 million ($2,243.9 million), corresponding to Fiscal Year 2019.
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.
Because the Guatemalan authorities were not able to form the Tender Board, a new date will be set for the receipt of tenders for the operation and administration of the Stationary Hydrocarbon Transport System.
Although the deadline for tendering for the pipeline had already been extended in November last year and March 14, 2019 was set as the deadline for submission of proposals, the authorities of the Executive failed to form the Board and now a new deadline will have to be announced.
Between 2014 and 2017, the fiscal deficit increased to an average of 1.4% of GDP, and for this year the authorities plan to end at 1.6% and in 2019 it could increase to 2.5%.
Representatives of the Ministry of Public Finance informed that some of the increase in the fiscal deficit foreseen for next year will be caused by the fact that the General Budget of Income and Expenditure of the State for Fiscal Year 2019, which will ascend to $11,390 million, will allow assigning more resources for infrastructure maintenance.
Up to August, the external and internal public debt amounted to $18.463 billion, equivalent to 23.4% of the country's Gross Domestic Product.
According to figures from the Ministry of Public Finance, in the last nine years the debt to GDP ratio has slightly varied, between 23.3% and 24.8%.
Regarding the country's indebtedness level, Abelardo Medina, senior economist at the Central American Institute of Fiscal Studies, said to Dca.gob.gt that "... It is interesting to note that, although Guatemala reports the lowest level of debt in the region and one of the lowest in the world, the evaluation given by risk rating agencies does not reach investment level. This is a product of political instability but, especially, it is due to the limited size of its fiscal revenues."
The first disbursement of $8 million has been made for forest recovery, restoration, management, production and protection in Guatemala.
The first payment made by the National Forest Institute (Inab) and the Ministry of Public Finance will be allocated to 4,129 projects, corresponding to 33,200 hectares of low-management forest.
After reducing the minimum amount for individual investors, the Guatemalan government has announced that between May and June it will begin with the issuance of $14 million.
For the current fiscal year, authorities have changed the minimum amount for an investor to acquire public debt bonds in the local market, reducing it from $3,000 to $1,300.
The Morales administration intends to continue with the issuance in 2018 of Treasury bonds aimed at small investors, with investment amounts ranging from between $3 thousand and $68 thousand.
The measure will give continuity to what was done in the previous year, when 35 small investors acquired debt bonds for $1.3 million at a rate of 6.25%.
The Morales administration plans to increase indebtedness next year, but with the objective of generating a "shock" of growth in investment in public infrastructure.
In the 2018 budget, the Ministry of Finance plans to increase indebtedness and consequently the fiscal deficit, but with the purpose of increasing investment in road infrastructure, such as roads and bridges. In the 2018 draft budget, the debt ceiling could reach $11.9 billion.
The government is warning that if the agreement on Mutual Administrative Assistance in Tax Matters is not ratified, the country is at risk of being included in the lists of non-cooperating countries.
The Guatemalan Ministry of Finance describes as "indispensable" the ratification by legislative of the Convention on Mutual Administrative Assistance in Tax Matters adopted by the Council of Europe and member countries of the Organization for Economic Co-operation and Development (OECD)