Guatemala. IBD supported Program by the Ministry of Public Finance to improve fiscal management Guatemala will receive a US$400 million loan from the Inter-American Development Bank to support a program to improve its fiscal management.
The IDB’s strategy consists in helping the Guatemalan government promote sustainable economic development and fight poverty. The new program will support a stable macroeconomic policy and will improve tax administration and collection to improve equality. The loan will also improve the income tax system, including international taxation. This initiative will also target the quality and transparency of government spending by implementing a system to control budget expenditures via transfers.
The customs services and the public procurement system will also be modernized under this program. Transparency and efficiency will create a better business climate, improve public confidence and help provide resources to finance poverty-targeted programs. The IDB has financed other projects for rural development, natural resources management and support for indigenous peoples in Guatemala.
The new funding, a three-tranche policy-based loan, will help consolidate fiscal sustainability given the complex international economic context. It will be supplemented by two institutional strengthening operations, one for the Ministry of Public Finance and the other for the Superintendency of Tax Administration.
The new loan is for a 20-year term, with a five-year grace period, at a variable interest rate. The Ministry of Public Finance will carry out the program.
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