The country issued $500 million in the international market with a 12-year term, at a rate of 5.37%, and $700 million in the 30-year term, at an interest rate of 6.13%.
The operation was carried out through the Bank of America (BOFA), one of the most important investment banks in the world, chosen through a competitive process, informed the Public Finance Ministry (Minfin).
The impact of the coronavirus crisis on the financial sector in Central America is expected to be felt mainly in services related to stock brokerage and investment advice, where a drop is expected.
The "Information System for the Impact Analysis of Covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the degree of impact that the crisis will have on companies according to their sector or economic activity, during the coming months.
The authorities that will assume the government in 2020 in Guatemala could evaluate options to tax temporarily some sectors, however, there would be a risk that these taxes become permanent.
The change from stable to negative in the classification perspective of foreign currency debt would not have, at least in the medium term, significant effects on the Guatemalan financial system.
On April 11, 2019 Fitch Ratings ratified the long-term foreign currency default rating of "BB", but changed the outlook from stable to negative.
The rating agency argued that the revision of the Negative Perspective of Guatemala's debt rating reflects political tension and greater uncertainty in the agents, in addition to a constant erosion in the low tax collection.
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The Tala loan app provides an alternative way to get short-term loans, that doesn’t involve complex procedures that are in use by banks and other lending institutions.
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Guatemala and El Salvador are the Central American economies that have registered the lowest levels of economic growth, when this is associated with the size of their public sector.
Panama, Nicaragua, Honduras and Costa Rica are the countries that would be obtaining exceptional results in their economic growth from the average expenditure of the region during 2011 to 2018, which could be associated with the investment made in past periods, informed the Central American Institute of Fiscal Studies (Icefi).
Insufficient resources to finance public spending and the accumulation of outstanding tax credit repayments are some of the problems that the government will face in Guatemala in 2020.
According to the Central American Institute of Fiscal Studies (Icefi), the new government should make an important effort to improve the effectiveness of the Superintendence of Tax Administration, since the percentage of non-compliance with Value Added Tax (VAT) has been growing since 2012 and the percentage of income tax and other taxes is unknown.
Between 2014 and 2017, the fiscal deficit increased to an average of 1.4% of GDP, and for this year the authorities plan to end at 1.6% and in 2019 it could increase to 2.5%.
Representatives of the Ministry of Public Finance informed that some of the increase in the fiscal deficit foreseen for next year will be caused by the fact that the General Budget of Income and Expenditure of the State for Fiscal Year 2019, which will ascend to $11,390 million, will allow assigning more resources for infrastructure maintenance.
The Municipality of Villa Nueva is putting out to tender a structuring and administration service for a loan for up to $24 million with a trust guarantee.
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.
The balance of debt authorized to finance the 2015 budget was issued in three tracts with maturities of ten, twelve and fifteen years, with rates of 6.99%, 7.19% and 7.38% respectively.
After declaring the auction held last week void, the Ministry of Finance has finally managed to place the balance of the debt issuance authorized by the Congress. Due to the conditions demanded by investors, the government had to adjust rates to levels below those offered in the auction of the first part of the issue.
Banking, energy and industry are the sectors where Gazprombank, the largest private bank in Russia, are exploring opportunities to finance projects in Guatemala and Latin America.
Representatives from the Russian company visited Guatemala to analyze the market and consider potential investment opportunities in sectors such as banking, energy and industry. The main thing they point, is that they need more information and that "... the country is not well known, unlike Costa Rica, Mexico and Panama, which have a bigger impact on that market."
An announcement has been made that transition to compliance by financial institutions with the conditions established by law will be carried over to the years 2014 and 2015.
The Treasury Department of the United States, through the inland revenue service (IRS) has announced that it will take into account the "good faith" of financial institutions outside the United States who will have to make adaptations in order to comply with the law and will not issue penalties for delays between 2014 and 2015.
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