The Monetary Board approved the changes to the Credit Risk Regulations, which were proposed by the Superintendence of Banks and seek to simplify the requirements for loans not exceeding $160,000.
In this scenario of economic crisis resulting from the outbreak of covid-19, the objective of the endorsed modifications is to favor SMEs and individuals to gain access to credit lines offered by commercial banks.
Arguing that management practices were detected that put at risk its solvency and soundness, the Monetary Board decided to suspend the operations of Financiera de Occidente, S.A., an entity that represents 0.35% of the total assets of the local banking system.
Erick Vargas Sierra, head of the Superintendence of Banks (SIB), told Prensalibre.com that "...
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 decision was made in response to economic activity, family remittances and credit to the private sector showing dynamism, and the fact that inflation remains within the target.
From a statement issued by the Bank of Guatemala:
The Monetary Board (MB), based on a comprehensive analysis of the external and internal situation, after reviewing the Inflation Risks Balance, decided to keep the level of the leading monetary policy interest rate at 3%.
The growing political paralysis is accentuating problems in the country´s accounts, something the government is trying to compensate by increasing indebtness.
In light of the Monetary Board´s approval of another issue of treasury bonds, worth $1.4 billion, criticism has arisen from economic analysts, who criticize the debt as an easy solution chosen because of an unwillingness to increase revenue and control rises in spending.
A slowdown in the domestic economy and slow recovery of the external sector has led the Bank of Guatemala to reduce the monetary policy rate from 4% to 3.5% .
From a statement issued by the Bank of Guatemala (BANGUAT):
The Monetary Board, based on a comprehensive analysis of the external and internal situation, after having heard of the Inflation Risks Balance, has decided to reduce the level of leading monetary policy interest rate from 4% to 3.5% .
The Superintendency of Banks in Guatemala has authorized Rural Bank of Guatemala to acquire the shares of the bank founded with Nicaraguan capital, ProCredit.
After Banrural submits the information and documents requested by law, the Superintendency of Banks in Guatemala (SIB) will authorize the purchase of shares of Banco ProCredit.
The amount of inflation expected in 2015 is one of the reasons why the Monetary Board has decided to reduce the interest rate benchmark from 4.5% to 4%, a level not seen since 2005.
From a statement from the Bank of Guatemala:
The Monetary Board, based on a comprehensive analysis of the external and internal situation, after having heard of the Inflation Risks Balance, has decided to reduce the level of leading monetary policy interest rate from 4.50% to 4%.
The Bank of Guatemala has lowered the leading policy rate, the reference for interest rates in the domestic financial system, from 5% to 4.75%.
The Monetary Board decided to lower the leading policy rate by 0.25 percentage points based on the external and internal economy, seeing a recovery in global economic activity.
From a press release issued by the Bank of Guatemala:
The Bank of Guatemala is maintaining at 5% the leading policy rate, the reference for interest rates in the domestic financial system.
The Monetary Board has decided to keep the leading monetary policy interest rate at 5%, based on a comprehensive analysis of the external and domestic economic situations.
From a press release issued by the Bank of Guatemala:
Guatemalan banks are now allowed to invest in securities issued by private domestic firms in the foreign market.
The Monetary Board (JM) has approved an amendment to an article of the Regulations of the Law on Banks and Financial Groups, allowing banks to invest in corporate bonds that are issued by national companies and which are traded in foreign markets.
The Monetary Board, at its meeting on October 30, decided to reduce the level of the leading interest monetary policy rate from 5.25% to 5%.
From a press release issued by the Bank of Guatemala (Banguat):
The Monetary Board, at its meeting today, decided to reduce the level of the leading monetary policy interest rate by 25 base points from 5.25% to 5.00%, based on a comprehensive analysis of the external and internal environment, after reviewing the inflation risks balance.
The Monetary Board of the Bank of Guatemala, at its meeting on September 25, decided to keep the Leader rate at 5.25%.
From a press release issued by the Bank of Guatemala (Banguat):
The Monetary Board, at its meeting today, decided to maintain at 5.25% the monetary policy leader interest rate, based on a comprehensive analysis of the external and internal situation, after being made aware of the Inflation Risk Balance .
After confirmation that the leading rate will remain at 5.25%, authorities at the Bank of Guatemala forecast that inflation will end in 2013 at 5%.
This was explained by the president of the Bank of Guatemala and of the Monetary Board, Edgar Barquín.
"... Earlier this year, experts warned that the price index would remain at 4 + -1, which, if this forecast is ratified, it would mean reaching the upper limit provided by the Monetary Board".
español
5883
