Guatemala: External Debt Exceeds $5,620 million

Of the total debt, 39% corresponds to the Inter-American Development Bank (IDB), 24% to the International Bank for Reconstruction and Development (IBRD), 19% to the Central American Bank for Economic Integration (BCIE), and the rest to others.

An article Diario de Centro América’s web site reports. "According to the Finance portfolio, Guatemala owes $630 million (11.2%) in the international market in Eurobonds. The remaining $348.53 million (6.2%) of the external debt is distributed among agencies from eight countries. "

Source: Diario de Centro América

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Guatemala's Foreign Debt Rises

January 2011

The total external debt to bilateral and multilateral agencies increased by $ 633 million in 2010 reaching $ 5,560 million.

Guatemalan Vice- Minister of Finance, Edgar Hernandez, said that much of the new debt is owed to the Bank of Japan JBIC.

AFP reports comments from the Vice - Minister, "...

Companies and Banks Opposed to Increasing External Debt

April 2009

The Monetary Authority of Guatemala decided, against the vote of banking representatives and private enterprise sectors, to increase debt through issuance by 10.9%.

The main argument by the opposition is that the solution to the problems in the treasury is to reduce state spending, not increase debt.

Guatemala’s Foreign Debt

February 2010

The global economic crisis forced Guatemala to increase its debt, but the country must now try to reduce it.

Economists are worrying for Guatemala’s foreign and domestic debt levels. “Eventually, it will be unsustainable, and the country won’t be able to pay it back. It will not happen right now, but in the medium term”, said Miguel Gutiérrez, analyst at Central American Business Intelligence.

El Salvador could Issue $800 Million in Euro-bonds

July 2009

The objective would be to swap short term Treasury notes, which will expire soon.

In May Congress approved a $1.800 million debt plan, which includes $800 million for facing the due date of short term debts, as well as $650 million for the expiration of foreign debt.

The Salvadoran Foundation for Social and Economic Development(FUSADES), recommended the issuance of $800 million worth of Euro-bonds to cover the expiration of the Treasury Notes. This way, a short term debt would be restructured into a long term one.