## 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](https://www.imf.org/en/publications/cr/issues/2020/06/11/guatemala-request-for-purchase-under-the-rapid-financing-instrument-press-release-staff-49507)

## Other formats

- [Markdown version](/en/publications/cr/issues/2020/06/11/guatemala-request-for-purchase-under-the-rapid-financing-instrument-press-release-staff-49507/index.md)
- [Structured JSON version](/en/publications/cr/issues/2020/06/11/guatemala-request-for-purchase-under-the-rapid-financing-instrument-press-release-staff-49507/index.json)
- [Bundle manifest](/en/publications/cr/issues/2020/06/11/guatemala-request-for-purchase-under-the-rapid-financing-instrument-press-release-staff-49507/bundle-manifest.json)

## Bibliographic details
- Published: June 11, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513547251.002

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### 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.

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## Content in this bundle

- **1gtmea2020001**
  - [1gtmea2020001 (Markdown version)](/-/media/files/publications/cr/2020/english/1gtmea2020001.pdf.md){rel="alternate" type="text/markdown"}
  - [1gtmea2020001 (PDF)](/-/media/files/publications/cr/2020/english/1gtmea2020001.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2020/06/11/guatemala-request-for-purchase-under-the-rapid-financing-instrument-press-release-staff-49507_