IMF Worries as Guatemala Issues More Debt

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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.

Analysts agree that the best alternative is to reduce public spending, in order to spend less than what the government collects in taxes, to avoid increasing the fiscal deficit and threatening the macroeconomic environment.

Source: politicagt.com

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The agreement, which expires in March 2012, will enable the country to get immediate access to funds worth $196 million.

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IMF Mission and Salvadoran Authorities Reach Agreement on an Economic Program for 2011 in the Context of the Stand-By Arrangement

Press Release No. 11/41
February 11, 2011
Mario Garza, mission chief of the International Monetary Fund (IMF) to El Salvador, issued the following statement today in San Salvador: