US to invest US$1bn in Guatemala’s private sector over next three years

In a memorandum of understanding signed by the director of the US International Development Finance Corporation (DFC), Adam Boehler, and Guatemalan President Alejandro Giammattei, the US aims to catalyse private sector investment of US$1bn to fund infrastructure projects, as well as support small- and medium-size enterprises. Mr Boehler said, after executing the memorandum, that the investment is expected to catalyse around US$4bn due to multiplier effects. DFC funds will go directly to Guatemalan projects without being paid to the government. The memorandum represents a joint initiative to contain Guatemalan migration to the US. President Giammattei has placed social development and economic stimulation, which he sees as interlinked, at the centre of his new programme for government. The investment is also part of the ‘America Crece’ programme which seeks to re-establish the US’s position of influence in the face of growing Chinese presence in the region. The US ambassador to Guatemala, Luis E. Arreaga, called the memorandum of understanding “proof of the US’s commitment to create an alliance with Guatemala to grow the economy, improve citizen security and ensure transparent, accountable and supportive human governance.”

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