No Issuance for Guatemala in 2011

Guatemala is unlikely to go to the international debt markets in 2011, according to a report by Citi. Guatemala’s congress rejected a proposal to issue $420m in external debt. The government needs to raise $280m to pay down amortizing debt, equivalent to 8% of the 2011 budget, according to finance vice minister Marco Livio Diaz. Citi has said that potential spending cuts are possible and that it does not expect repayment problems. External debt up to March 2011 was $5.5bn, while net internal revenues were almost $6.4bn. Guatemala is expected to increase local debt issuance as a result, which has already been approved by congress, adds Citi.