The Inter-American Development Bank (IDB) will support several programs to improve the competitiveness of companies in Guatemala, a move that will help boost economic growth.
In a <?xml:namespace prefix = st2 />meeting today, the board of the IDB approved a proposal that will allow Guatemala to use a $29 million loan from the Bank to start up a program for the development of firms, particularly <?xml:namespace prefix = st3 />micro, small and medium enterprises, and production chains in the country, based on a scheme that promotes public-private partnerships. The program will offer a series of business development services to boost productivity and competitiveness in productive sectors that are potentially world class and territorial leaders.
The loan will also support the efforts of different government agencies to attract private investment in sectors considered strategic to the country, such as tourism, transportation and energy, as well as interventions geared to improve the overall business and investment climate of the country.
The IDB loan was originally approved in 2006. Given the adverse consequences of the international economic and financial crisis on the Guatemalan economy, the loan was redirected to this program to better respond to the needs of the productive sector in the current economic climate. Guatemala’s efforts to reactivate the economy present an opportunity for the Bank to support such an intervention.