"Each country is competing not with the private sector but with the world. If we do not join together it will be very difficult ": Eduardo Frei, former president of Chile.
In a conversation that Roxana Larios from Prensalibre.com had with Eduardo Frei, the former Chilean president, he urged the Guatemalan State to make alliances with the private sector using the concession model, pointing to the importance of compliance with environmental laws in order to avoid social conflicts in mining and hydroelectric projects.
Central American countries still need to improve their economic performance to reach investment grade ratings.
On its Quarterly Country Risk report for June 2010, the Central American Monetary Council (SECMCA), notes that Moody’s Investor Service improved the foreign currency risk ratings for Guatemala and Nicaragua. For Guatemala, the criteria for this improvement included a stable macroeconomic environment, backed by prudent fiscal and monetary policies, and for Nicaragua improvement in debt indicators and low fiscal deficits.
Guatemala´s BB+ sovereign risk rating and stable perspective, which is so close to the desired “Investment Grade,” is facing four threats.
According to an article by C.Véliz and J. Gramajo in Sigloxxi.com, Mauricio Choussy, the director of Fitch Central America, notes that four weaknesses persist in the country: “Low tax revenue, weak social indicators, social instability, and high levels of delinquency.”
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