The Lehman effect on Guatemala

©image: Oscar Mota

The National financial system is not showing signs of infection. Jose Angel Lopez, president of the Banking Association of Guatemala (ABG), indicated that the banks have their investments in the Central Bank, in government bonds, credits and other assets, hence their exposure to the American banks is minimum.
With regards to international reserves, 90% of it is invested in US Treasury Bonds, and there are no investments in private banks such as Lehman, Suarez said.

Source: elperiodico.com.gt

More on this topic

Guatemalan banks request extension of money table

January 2009

The banking sector requested that the term for the temporary measure of providing liquidity in US dollars via repo transactions be extended.

Sigloxxi.com reports that "Jose Angel Lopez Camposeco, president of the Banking Association of Guatemala (ABG) and the Rural Development Bank (Banrural), commented that the measure worked, "because it is an instrument which gave signals that in case of any need for or suspension of credit, we have resources available."

Guatemala: Monetary Board Authorizes Bond Issue

October 2010

The Monetary Board (JM) authorized the issuance of $ 210 million in treasury bonds by the Ministry of Finance.

If approved by Congress, the Government's deficit this year would reach 3.4% of GDP.

Elperiodico.com.gt reports, "Julio Suarez, vice president of Banguat, announced that JM endorsed his opinion of an increase in public debt, although representatives of the private banking and corporate sectors opposed it."

The Lehman effect on Honduras

September 2008

"The global financial crisis has cause the main investment bank in the US to go bankrupt and will produce an strong impact on the Honduras' weak economy.

"Economic growth will stop, limiting access to credit and as a result the upward trend of interest rates will continue," the ex-president of the Central Bank of Honduras, Maria Elena Mondragon, warned.

What impact would a U.S. debt crisis have?

July 2011

The U.S. could be facing a possible reduction in their risk rating, due to levels of national debt and government deficit.

Democrats and Republicans have been debating in the United States Congress trying to reach an agreement that will raise the debt ceiling and secure public finances for the future, avoiding a potential cessation of payments or a reduction in the country’s risk rating.