Private investors are planning to build a four-lane highway, 31 kilometers long, which would serve as a beltway for vehicles passing through the municipalities of San Bernardino, Mazatenango and Cuyotenango, department of Suchitepéquez.
This new investment would be executed in a format similar to that of the Via Alterna del Sur (VAS), which is private and operates on a toll basis, and crosses the southern municipalities of the metropolitan area between these Villa Nueva and Villa Canales, in the department of Guatemala.
For this year, growth in banking credit to the private sector is projected at between 6% and 9%, but the year-on-year increase registered up to March was only 4%.
Figures from Banco de Guatemala show that during the year 2017 credit to the private sector grew at a monthly average of 5.17%, and the lowest increases were reported in November and December when the amount increased compared to the same months of 2016 by 4.9% and 3.8% respectively.
The union of Guatemalan industrialists will propose a development agenda, with the aim of improving economic conditions and recovering some of the investment lost in recent years.
When public resources are very limited, as it happens in Central American countries, association schemes between the State and the private sector become essential for developing the infrastructure that the region so badly needs.
A report from the Secretariat of Economic Integration (Sieca) states that "...In Central America, growing fiscal constraints faced by the countriespublic sectors make it increasingly difficult to achieve efforts for long-term infrastructure projects.In this context, Public-Private Partnerships (PPP) become relevant as an alternative measure of financing where private participation sector is facilitated in partnership with the government, with the aim of improving quality of services, reducing operating costs and capital, generating additional income, improving public management and minimizing budget spending.
Trade and construction activities recorded the lowest demand for bank credit, which grew 6% in the first five months of the year compared to the same period in 2016.
Following trade and construction, electricity and water are the worst performers according to figures from the Guatemalan Superintendency of Banks.
The decrease in the granting of credits to the business sector has been attributed to legal uncertainty caused by the case of the hydroelectric stations Oxec I and II.
Datafrom the Bank of Guatemala indicates that as of April 27, the balance of credit granted by the banking system to the private sector amounted to $24 billion, 5.6% more than in the same period in the previous year, but only 0.4% more than in December of last year. In the case of OffShore entities, the figures indicate that loans granted by these institutions up to April 20 totalled $1860 million, recording a year-on-year change of -1.5% and -4.2% compared to December 2016.
The Costa Rican company increased its sales by 2% compared to 2014, thanks to the dynamism of flavored alcoholic beverages in the US, foods in Guatemala, and beers, wines and spirits in Costa Rica.
Flavored alcoholic beverages, especially in America, and increased profitability in beer, wine and distilled drinks in Costa Rica and food in Guatemala, boosted Costa Rica Florida Ice & Farm's operating income in 2015, reaching $179 million, 13% more than in the previous fiscal year.
In September the banking loan portfolio to the private sector recorded an increase of 17% compared to the same month last year.
Despite the political turmoil that the country has seen so far this year, bank credit portfolios have maintained positive figures and growth rates above 10%. The total loan portfolio in the banking system registered an annual increase of 13.9% in September this year, highlighting not only the growth of credit to businesses, but also for consumers, a category which grew by 15.7%.
In the view of the private sector it does not make sense to pass a budget that contains vices of the past which encourage theft of public resources, nonexistent jobs, inefficient spending and corruption.
From a statement issued by the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (CACIF):
While the Investment and Employment Law Project is still waiting in congress, the new Minister of Economy announced that they are preparing a "plan B" to maintain incentives for the productive sector.
At least four months before the expiration of the Law on the Promotion and Development of Exports and Maquila Activities, it has been announced that the aim of the alternative plan is to maintain the tax benefits enjoyed up until now by exporting companies, mainly textiles and maquila.
The latest cases of political corruption revealed, the fiscal crisis and the poor economic situation have plunged business confidence to its lowest level since 2009.
The business sector is not only concerned about what has happened, but what could happen in the coming months, as reflected in the results of the Central Bank index which measures perceptions of economic agents regarding the business and investment climate in the country.
Following revelations about corruption at the highest level and the processing of those involved, it is unlikely that an official will request bribe money from a businessman.
EDITORIAL
Some analysts are concerned about the effect of allegations of corruption in Guatemala, noting that it will increase mistrust and the instability in economic activity, which could even have a negative effect because of the greater weight of the Guatemalan economy in Central America, over other countries in the region.
Growing institutional weakness in several countries of the isthmus brings to the forefront the responsibility of the business sector to keep the economy of this region moving forward.
EDITORIAL
Currently, the governments of several Central American countries are showing signs of weaknesses which - to different degrees- point to a sharp decline in institutional quality.
The number of companies and sole traders registered in the Commercial Registry in January grew by 46% compared to the same month in 2014, a year in which a decrease of 3% was recorded.
In January 2015 2.289 companies were registered, 720 more than the 1,569 reported in the same month of 2014. Also last month 1,311 individual traders were registered, exceeding the 899 for the same period last year.
Recognized Brazilian company of backhoe loaders, telescopic, articulated and other types of cranes looking for companies interested in representing the brand and distributing their machinery in Central America and Mexico. The company manufactures and sells telescopic,...