Narrow Your Choices

Refine By Countries

Refine By Series

Refine By Language

Refine By Date

—

Refine By IMF Taxonomy

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Business and Economics > Banks and Banking

You are looking at 1 - 10 of 40 items for :

  • Type: Journal Issue x
Clear All Modify Search
Cover IMF Staff Country Reports
Guatemala: 2024 Article IV Consultation-Press Release; and Staff Report
International Monetary Fund. Western Hemisphere Dept.
The 2024 Article IV Consultation discusses that Guatemala has continued to maintain its solid track record of macroeconomic policies, with economic growth moderating to an estimated 3.5 percent in 2023 and consumer price index inflation and inflationary pressures decelerating from a 9.9 percent peak year-on-year in February 2023 to 3.6 percent in June 2024, within the monetary policy target. The Guatemalan economy continues to show stability and soundness thanks to a legacy of prudent monetary and fiscal policies. The country's outlook remains favorable, with risks skewed to the downside. With hefty investment needs, Guatemala will need to boost revenue while bolstering the quantity and quality of spending. Higher growth and absorption of capital flows into the country requires gradual strengthening of the monetary and exchange rate policy frameworks. An inclusive and sound financial sector guided by prudential principles should further support Guatemala’s economic development efforts.
Keywords:
FX participation rule band; FX intervention; reference exchange rate; financial institutions buy; reform agenda; Anti-money laundering and combating the financing of terrorism (AML/CFT); Central bank policy rate; Tax collection; Global; Central America; Caribbean
Cover IMF Working Papers
Financing for the Post-pandemic Recovery: Developing Domestic Sovereign Debt Markets in Central America
Jean François Clevy
,
Mr. Guilherme Pedras
, and
Mrs. Esther Perez Ruiz
The pandemic has urged countries around the globe to mobilize financing to support the recovery. This is even more relevant in Central America, where the policy response to cushion the pandemic’s economic and social impact has accentuated pre-existing debt vulnerabilities. This paper documents the potential for local currency bond markets to diversify and expand financing for the recovery, lowering bond yields, funding volatility, and exposure to global shocks. The paper further identifies priority actions, both national and regional, to support market development.
Keywords:
Bond Markets; Fiscal Deficit; Public Debt; Global Spillovers.; financing condition; pre-existing debt vulnerability; sovereign bond bond yield; market development; LCBM development; Yield curve; Securities markets; Government debt management; Government securities; Global; Central America
Cover IMF Staff Country Reports
Guatemala: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Guatemala
International Monetary Fund. Western Hemisphere Dept.
This paper focuses on Guatemala’s Request for Purchase Under the Rapid Financing Instrument. The coronavirus disease 2019 pandemic is severely impacting Guatemala. Faltering external demand, declining remittances, and the necessary lockdown and social distancing to contain the virus, have disrupted economic activity and severely worsened external and fiscal positions. IMF support under the Rapid Financing Instrument will help address the urgent balance of payments and fiscal needs, improve confidence, and catalyze support from other external partners. In order to support the recovery and counter future shocks, the authorities intend to maintain an accommodative monetary policy stance and exchange rate flexibility. While credit risk regulations have temporarily been eased to facilitate loan restructuring, the authorities are closely monitoring banks’ exposures and the levels of provisioning to ensure the stability of the financial system. The Guatemalan authorities have reaffirmed their commitment to ensure that emergency financing is used effectively, transparently, and through reinforced governance mechanisms.
Keywords:
ISCR; CR; Guatemala's request; request for emergency; urgent balance of payments; financing; BANGUAT authorities; procurement system; COVID-19; Balance of payments assistance; Remittances; Credit; Central America; Global
Cover IMF Staff Country Reports
Guatemala: 2019 Article IV Consultation-Press Release and Staff Report
International Monetary Fund. Western Hemisphere Dept.
Fundamentals remain strong and growth has revived after three years of subpar performance. Improved budgetary execution and monetary accommodation, broadly in line with past staff advice, are providing demand support as the economy navigates weaker terms of trade. Near-term growth is poised for a rebound on the back of fiscal impulse from the 2019 expansionary budget, exports recovery after last year’s slump, and construction-driven investment. Lack of progress on long-delayed business climate and public sector reforms, the Sustainable Development Goals (SDG) agenda, and financial inclusion, dampen medium-term prospects.
Keywords:
ISCR; CR; exchange rate; private sector; balance; support of demand; executive board assessment; private sector growth; inflation expectation; monetary policies' support; Public sector; Inflation; Tax evasion; Global; Central America
Cover IMF Staff Country Reports
Guatemala: Selected Issues Paper
International Monetary Fund. Western Hemisphere Dept.
This Selected Issues paper analyzes remittances and households’ behavior in Guatemala. Remittances are a structural feature of the Guatemala economy. In 2017, remittance flows accounted for over 11 percent of GDP and benefitted over 1.5 million of Guatemalan households. The effects of remittances on the labor supply are estimated. There is no evidence of remittance-induced work disincentives. The results suggest that the labor supply for members of remittance-receiving households is relatively more elastic, most markedly so for the 41-65 age group: a one percent increase in weekly wages leads to a 0.5 percent increase in weekly hours worked for members of remittance-receiving households, versus 0.2 percent increase for non-remittance-receiving households.
Keywords:
ISCR; CR; remittance; food inflation; exchange rate depreciation; investment residual; inflation expectation; fixed capital capital formation; reform proposal; Inflation; Remittances; Personal income; Corruption; Income inequality; Global; Western Hemisphere; Central America
Cover IMF Staff Country Reports
Guatemala: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Guatemala
International Monetary Fund. Western Hemisphere Dept.
This 2018 Article IV Consultation highlights that a sound monetary policy management in Guatemala has helped keep inflation expectations firmly anchored. Fiscal deficits have remained at decade lows on the back of low debt tolerance and inadequate budgetary execution. Terms of trade gains and an upsurge in remittances inflows moved the current account into a sizable surplus. The financial system is sound and well-regulated while vulnerabilities seem manageable. Growth performance nevertheless falls shorts of the rates needed to achieve Guatemala’s aspirations to meaningfully lift the living standards of its citizens. Near-term growth prospects remain subdued, at 3.2 percent in 2018 and 3.6 percent in 2019.
Keywords:
ISCR; CR; rate; authority; sound monetary policy management; policy; inflation risk; inflation expectation; terms of trade gain; activity indicator; target band; Inflation; Tax administration core functions; Global; Central America; Caribbean
Cover IMF Staff Country Reports
Guatemala: Selected Issues and Analytical Notes
International Monetary Fund. Western Hemisphere Dept.
This Selected Issues paper estimates potential output growth and the output gap for Guatemala. Potential output growth averaged 4.4 percent just before the global financial crisis but has since declined to 3.75 percent owing to lower capital accumulation and total factor productivity (TFP) growth. It is estimated at 3.8 percent in 2016, and the output gap has virtually closed. Potential growth is expected to reach 4 percent in the medium term owing to the expected improvements in TFP growth. Policies should also prioritize mobilizing domestic savings to invest and build a higher capital stock.
Keywords:
ISCR; CR; GDP; yield; Guatemala; food inflation; inflation headline inflation; inflation expectation; macroeconomic fundamentals; commodity price inflation; nominal interest rate; Financial inclusion; Inflation; Financial sector development; Credit; Global; Central America; Asia and Pacific; Caribbean
Cover IMF Staff Country Reports
Guatemala: 2016 Article IV Consultation-Press Release; Staff Report; Informational Annex
International Monetary Fund. Western Hemisphere Dept.
This 2016 Article IV Consultation highlights that the macroeconomic performance of Guatemala has been solid. The economy grew at 4.1 percent in 2015, slightly above potential, despite a slowdown in public consumption and investment during the crisis. Private consumption was lifted by lower oil prices and strong remittances. The latter also boosted the external position, creating a comfortable reserve cushion. With inflation well anchored, monetary policy was eased to support growth. The macroeconomic outlook remains benign. Growth is set to return to its trend rate of 3.8 percent in 2016 and gradually rise to 4 percent in the medium term, reflecting the positive impact of efforts to increase transparency and efficiency in public spending.
Keywords:
ISCR; CR; central bank; inflation expectation; economy; food price inflation; price; core inflation; oil price decline; anti-corruption reform agenda; article IV IMF mission; Public sector; Inflation; Credit; Global
Cover IMF Working Papers
Financial Inclusion: Zooming in on Latin America
Ms. Era Dabla-Norris
,
Yixi Deng
,
Anna Ivanova
,
Ms. Izabela Karpowicz
,
Ms. Filiz D Unsal
,
Eva VanLeemput
, and
Joyce Wong
Countries in Latin America and the Caribbean (LAC) have made important strides in promoting financial inclusion of firms and households. However, while the region is broadly at par with its peers on financial inclusion of firms, household inclusion lags behind. Nonetheless, there is substantial heterogeneity across LAC countries. Reducing borrowing costs and strengthening further the regulatory environment, while taking steps to protect efficiency and stability of the financial system, could help close financial inclusion gaps. Reducing financial participation and monitoring costs and relaxing collateral constraints will help spur growth and reduce inequality though trade-offs are likely, as illustrated in the case of Guatemala, El Salvador, and Peru.
Keywords:
WP; firm; inclusion gap; bank; cost; finance; Latin America; Financial inclusion; Growth; Inequality; firm employment distribution; World Bank enterprise; enterprise inclusion; leveraged firm; amount firm; firms of credit opportunity; informal finance; firm FI gap; Personal income; Collateral; Income inequality; Credit; Asia and Pacific; Global
Cover IMF Working Papers
Central Bank Financial Strength in Central America and the Dominican Republic
Mr. Andrew J Swiston
,
Ms. Florencia Frantischek
,
Mr. Przemek Gajdeczka
, and
Alexander Herman
This paper examines the financial strength of central banks in Central America and the Dominican Republic (CADR). Some central banks are working off the effects of intervention in distressed financial institutions during the 1990’s and early 2000’s. Their net income has improved since then owing to lower interest rates, a reduction in interest bearing debt, and recapitalization transfers. Claims on the government have fallen, but remain high and are typically reimbursed at below-market rates, and capital is negative when adjusting for this. Capital is sufficient to back a low inflation target given that the income position is supported by unremunerated reserve requirements. Capital is likely to increase over time, but only gradually, leaving countries vulnerable to macroeconomic risks. The capacity of CADR central banks to engage in macroeconomic stabilization would benefit from increased emphasis on low inflation as the primary objective of monetary policy and a stronger commitment by governments to recapitalization.
Keywords:
WP; CADR central banks; CADR country; foreign currency; economic value; monetary base; central bank; central bank financial strength; money demand; recapitalization; Central America; Costa Rica; Dominican Republic; Guatemala; Honduras; Nicaragua; policy objective; liquidity support; International reserves; Currencies; Financial statements; Central bank balance sheet; Central bank bills