Guatemala: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Guatemala
IMF Staff Country Reports, June 11, 2020
Source details
- Canonical URL
- Guatemala: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for Guatemala
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Bibliographic details
- Published: June 11, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513547251.002
Overview and economic impact
- The paper focuses on Guatemala’s Request for Purchase Under the Rapid Financing Instrument.
- The coronavirus disease 2019 pandemic is described as "severely impacting Guatemala."
- Key domestic and external shocks cited:
- Faltering external demand.
- Declining remittances.
- Lockdown and social distancing measures that have disrupted economic activity and "severely worsened external and fiscal positions."
IMF support objectives and expected effects
- IMF support under the Rapid Financing Instrument (RFI) aims to:
- Help address urgent balance of payments and fiscal needs.
- Improve confidence.
- Catalyze support from other external partners.
- Authorities’ intentions to support recovery and counter future shocks include:
- Maintain an accommodative monetary policy stance.
- Maintain exchange rate flexibility.
Financial sector and credit measures
- Credit risk regulations have been temporarily eased to facilitate loan restructuring.
- Authorities are:
- Closely monitoring banks’ exposures.
- Monitoring levels of provisioning to ensure the stability of the financial system.
Governance, transparency, and use of funds
- The Guatemalan authorities have reaffirmed their commitment to ensure that emergency financing is used:
- Effectively.
- Transparently.
- Through reinforced governance mechanisms.
Content in this bundle
- 1gtmea2020001