The Guatemalan company Continental Towers will receive funding from the International Finance Corporation to build and maintain cell towers in Central America.
According to an article in Elperiodico.com.gt, "The IFC's investment includes a loan of $40 million and a syndicated loan of $80 million with Banco HSBC Panamá, Banco General de Panamá, the Dutch Entrepreneurial Development Bank (FMO) and the Inter American Corporation for Infrastructure Financing. "
The Japanese Ambassador to Guatemala lamented a stalemate in Congress for approving a $120 million loan for road infrastructure.
"While I respect the procedures that each country has to follow, it doesn’t send out a good message that this loan has been stalled by internal processes," said Teruaki Nagasaki, Japanese Ambassador to Guatemala, as quoted by Elperiodico.com.gt.
The country has made an agreement with the BCIE for a 75 day extension to the loan which expired on 25 August and has not yet been approved by congress.
The credit was designed to support the ministries of Health and Education, to be implemented in this year, 2011.
The Finance Minister, Alfredo Rolando Del Cid Pinillos, said: "We managed to extend the BCIE funds for two and a half more months.
International financial entities will increase the amount of finance available for private businesses and projects in Latin America
The International Finance Corporation (IFC), the World Bank, the Inter-American Development Bank (IDB) and the American Investment Corporation (IIC) have announced their willingness to increase resources for the financing of "eco-friendly projects, infrastructure, agribusiness and even educational projects," developed by private enterprise.
The entity is analyzing suspending or extending loans that had been approved to finance part of the government’s budget.
Over $400 million designated for health affairs, competitiveness, small and medium enterprises, among other sectors, may not be disbursed unless congress speeds up their approval.
This is the view of the Inter-American Development Bank, who will discuss with government officials whether to extend or suspend the loans already approved.
Congress’ slow pace of Congress in approving the fiscal plan and another 12 loans could bring down the country’s risk rating, the finance minister has said.
A low risk rating in the country, difficulties in accessing international credit markets and loss of credibility abroad are some of the situations that could arise if there is no progress in passing the tax package.
The President of the IDB announced funding to meet priorities in Central America and the Dominican Republic.
"This year we will maintain our response and commitment to the region," said Alberto Moreno. “The $ 2.000 million” he added, “will be used to address infrastructure priorities, particularly roads, energy, social safety nets, with an emphasis on strengthening health services, education, housing, natural disasters and climate change, finance and public safety.
Congress has pending approval of 10 loans totaling $ 616 million for social projects.
Of the total 10, four are pending opinion, three have passed the first debate and three more are awaiting the second debate.
Sigloxxi.com adds, "among those pending opinion is one for $ 46.8 million for a program to combat urban poverty by the Inter-American Development Bank (IDB).
The International Finance Corporation (IFC) will acquire up to 15% of the assets of the Guatemalan insurer.
The capital will be used to develop a model of "Bancassurance", which will market the insurance products through the network of branches owned by Banco G&T Continental, a sister company of the insurer.
As reported by the IFC, the level of cooperation between the two entities has been limited so far, but it is believed that by distributing insurance products through the bank, substantial synergies can be achieved, as well as higher returns on investment and a greater penetration in the Guatemalan market.
The loan will assist in preservation of health and education in the event of natural disasters.
This emergency project will provide funds to pay salaries of health workers and teachers in the poorest municipalities of the country, assisting in keeping health centers and care facilities operational and to ensure educational coverage for 2.8 million children, while the government uses financial resources for reconstruction efforts.
In early December, the government will begin negotiations for a potential $300 million agreement.
The Finance Minister, Alfredo del Cid, said that “that agreement will set parameters to control the fiscal deficit, which will be 2.8 percent this year and between 3 percent and 3.2 percent in 2011".
Guatemala has requested to date four Stand-By agreements, from 1992 to 94, 2002 to 03, 2003 to 04 and the last from 2009 to 2010.
The Japanese loan will be used to improve the country's road infrastructure.
The cooperation agreement will be signed by President Alvaro Colom during his visit to Japan, the loan is for 25 years with a seven year grace period.
According to reports by Century XXI, "The visit of the Guatemalan president is focused on strengthening the economic, political and cooperation policies with Japan, one of the three major donors of the Central American country."
The country is negotiating a loan with the World Bank for $ 100 million and another with the BCIE for $ 265 million in order to assist in the emergency.
This was announced by Finance Minister Edgar Balsells during the Donor Conference on Reconstruction. These loans adds to the $ 250 million loan announced by the IDB.
According to Sigloxxi.com, "These resources, he explained, will join others with the implementation of a unique and temporary tax for employers and employees, as well as Anti-Evasion Law and donations from friendly countries, it is estimated that reconstruction would have a total cost of $ 1,905 million."
The Inter-American Development bank will earmark $1.8 billion to fund projects related to the Central American integration process.
This was stated by Luis Alberto Moreno, president of the bank, at the meeting of the Central American Integration System (SICA).
Moreno was quoted by Laprensagrafica.com as saying: “More and better regional integration will be key for economic recovery, global competitiveness and employment generation, as well as promoting equality and the reduction of poverty".
The Executive Board of IMF on June 16 concluded the third review of Guatemala’s economic performance under a program supported by an 18-month Stand-By Arrangement (SBA).
The Guatemalan authorities intend to continue treating the arrangement as precautionary.
The arrangement, in the amount equivalent to SDR 630.6 million (about US$927.2 million) was approved on April 22, 2009 (see Press Release No.