More Credit Card Requirements in Guatemala

©image: Colin

The main cause is the likelyincrease in defaults, derived from the international crisis and bad local economic situation. In 2008, credit card delinquency increased, reaching 0.46% of the total of accounts receivable.

According to the article published in sigloxxi.com, Flavio Montenegro, General Manager of G&T Continental, indicated that "These are measures that should be taken to maintain credit in the country…," upon explaining that the interest rates were adjusted in the third quarter of 2008.

Source: sigloxxi.com

More on this topic

Honduran Banks will Access Tax Defaulters Registry

June 2011

The partnership between the Executive Directorate of Revenue and the company Equifax, will mean that tax defaulters will be included in the credit bureau’s information.

This agreement will allow access by the financial system (private banks, finance companies, and cooperatives), to taxpayer’s debt information held with the Treasury.

IDB Loans $70 Million to Banco G&T Continental

January 2010

The loan to the Guatemalan bank aims to finance import and export operations.

Within the Trade Finance Facilitation Program (TFFP), the Inter-American Development Bank (IDB) granted Guatemalan Bank G&T Continental $70 million.

Flavio Montenegro, G&T CEO, remarked: "This transaction strengthens our trade operations and supports the economy of Guatemala, as it increases the funding available for our nation's industries".

Guatemala: Credit Cards Profit $36 Million

November 2009

From January to September, credit card issuers reported $36 million in profit.

Profitability was 32% in the same period, according to data from the Banking Superintendence.

Edgardo Pérez Preciado, executive at G&T Continental, told Prensalibre.com: "...according to a study conducted by credit card issuers in Guatemala, there was less consumption and less credit card holders.

Guatemala people's banks seek cross-border business

May 2008

Guatemala's "people's banks", that lend to the likes of small shopkeepers, aim to take their business model to the rest of Central America.

G&T Continental and Banco Industrial (BI) run mini-branches where low-income customers can cash cheques, open savings accounts and pay public-service bills.