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Guatemala aims to raise debt in order to reduce deficit

Thursday, October 4, 2012

Guatemala expects to cut its fiscal deficit in 2013 and sell more debt abroad where interest rates are lower than at home, deputy finance minister Dorval Carias said.

Next year's deficit in the Central American country will narrow to 2.2 percent from 2.6 percent of gross domestic product in 2012 as an improved tax take and tighter government spending strengthen the country's budgetary position.

"We are reducing to 2.2 percent our 2013 fiscal deficit," Carias said, adding that most of the gap will be financed by foreign loans and bond sales.

Source: Reuters