Regarding the new bill presented to Congress at the beginning of 2019, the Superintendence of Banks is of the opinion that the interest rate should not be limited.
The Credit Card Law came into force on March 8, 2016, but was suspended at the end of the same month, after business chambers, card issuers and the Bank of Guatemala filed legal appeals before the Constitutional Court (CC).
From May 2019, foreign customers will have to declare to local system banks that their funds meet their country's tax requirements.
The Superintendence of Banks of Panama (SBP) approved Agreement 02-2019, which implements the recommendations of the Financial Action Task Force, which consists of expanding the required due diligence measures of banks with their customers.
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.
Limiting the fees charged in Costa Rica and establishing a law that defines market limits in Guatemala are part of the attempts being made in the region to regulate the use of credit cards.
A law proposal presented last January before the Legislative Assembly of Costa Rica, aims to regulate the percentage of the commission paid by businesses for credit or debit cards.
After the law seeking to regulate the credit card market in Guatemala was declared unconstitutional, a new proposal was presented.
The Credit Card Law that was declared unconstitutional at the beginning of 2019, entered into force on March 8, 2016, however, after the business chambers, card issuers and the Bank of Guatemala filed legal appeals before the Constitutional Court (CC), was suspended on March 31 of that year.
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.
The regulation being prepared by the Superintendency of Banks will include simplified procedures for signing contracts, paying premiums, renewals and claims made with this type of insurance.
Now that the process of public consultation of the new regulation has ended, the Superintendency of Banks is preparing to present it to the Monetary Board for approval.
Regulations are being prepared for the entry into force of the microfinance law on November 10.
Liquidity, solvency and corporate governance are some of the aspects that govern the 30 regulations prepared by the Superintendency of Banks of Guatemala, for the entry into force of thelawin November.
On October 12 and 13 representatives from the banking and financial sector will be gathering together in Panama City to discuss issues relating to regulation, business and investment.
The International Finance Summit is an event being organized by the Banking Association of Panama and will be held at the Hotel Trump Ocean Club Convention Center.
The interest rate charged by issuers cannot exceed the "double of the amount of the value corresponding to the average weighted annual interest rate in the banking system."
From a statement issued by the Congress of Guatemala:
With 96 votes, the deputies to the Congress of the Republic approved a total replacement amendment aimed at regulating credit card interest rates ; Article 10 of the 4651 bill.
Amendments to securities regulations are being prepared in order to allow local stock brokers to buying shares of listed companies in developed markets.
This change in regulations and operational infrastructure will give access to the purchase of shares of international companies listed on stock markets such as New York.
The demand for credit by people who can not meet the requirements of regulated financial institutions, is favoring pawnshops and moneylenders.
Financial institutions operating under the official regulatory framework have requirements, as established in law, that many Guatemalans can not comply with when applying for a bank loan. This situation has resulted in an increase in the number of entities operating outside of the law, offering quick financing without a lot of formalities or requirements.
Companies in the sector are warning of over-indebtedness in some areas of the country and are asking for adjustments to the rules that regulate the activity.
At the end of the first quarter of 2014, the country has a total of 1,708 outstanding microloans, with a total balance of $774,000 and having a default rate of 1.84%, according to data from the Bank of Guatemala (BANGUAT).