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.
Guatemala’s economic recovery has continued despite the natural disasters that hit the country in May.
The Executive Board of the International Monetary Fund (IMF) today concluded the fourth review of Guatemala’s economic performance under a program supported by an 18-month Stand-By Arrangement (SBA). The arrangement, in the amount equivalent to SDR 630.6 million (about US$974.7 million) was approved on April 22, 2009 (see Press Release No.
The International Monetary Fund (IMF) report sheds a positive light on the country's macroeconomic situation and the stability of its financial system.
A staff team from the International Monetary Fund (IMF) visited Guatemala during August 17-26, 2010 to conduct the fourth and final review of the Stand-By Arrangement approved in April 2009. The mission met with Minister of Finance Edgar Balsells; Central Bank Governor María Antonieta de Bonilla; Superintendent of Banks Edgar Barquín; other senior government officials, and representatives of the private sector.
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.
The Government risks failing to comply with the current Stand-By Agreement with the International Monetary Fund, as its fiscal deficit would reach 3.9%.
However, Fernando Delgado, IMF representative for Guatemala, stated that “if the Government provides strong reasons for increasing the deficit, the Fund could maintain the Stand-By Agreement”.
Meanwhile, the Guatemalan Congress is awaiting the opinions of the Monetary Board and the Public Finances Ministry to decide if they approve the issue of $563 million to $876 million.
After a second review of Stand-by Agreement signed in April, the IMF approved a disbursement of $786 million.
The Executive Board of the International Monetary Fund (IMF) on December 16th completed the second 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.
After a second review of Stand-by Agreement signed in April, the IMF approved a disbursement of $786 million.
The Executive Board of the International Monetary Fund (IMF) on December 16th completed the second 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 Executive Board of the International Monetary Fund today completed the first review of Guatemala’s economic performance under the 18-month Stand-By Arrangement
The arrangement, in the amount of SDR 630.6 million (about US$1 billion) was approved in April 22, 2009 (see Press Release No. 09/142).
With completion of the review, a total of SDR 462.4 million (about US$734 million) will be available for drawing.
The letter of intent spells out the Guatemalan Government’s fiscal and monetary policy for the 2009-2010 period.
In the letter of intent, Guatemalan authorities have requested a Stand-By Agreement (SBA) for a period of 18 months, with full access to 630.6 million in Special Drawing Rights (SDRs) (about $951 million.) An initial purchase of 420.4 million in SDRs (about $634 million) will be available upon the Board’s approval of the agreement.
The 16-month line of credit will strengthen the country’s international position and monetary reserves.
Gabriel Lopetegui of the IMF said that "it is a precautionary agreement that is not expected to be used, but it is there to serve as a shield for the country."
An article in elPeriódico of Guatemala indicated that the funds could be used to "address balance of payments issues such as capital flight, devaluation or a sharp drop in foreign exchange earnings."
español
7288
