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The United States will fund Guatemala’s private sector with $1 billion to stimulate investment and create jobs, said US government agency head.
It was announced after Alejandro Giammattei, the new president of Central American country, met with US officials to discuss spurring economic growth through investment and to contain migration in the US.
“It’s a billion dollars of financing from us, which should catalyze about $4 billion,” said chief executive of the US DFC, Adam Boehler.
The $4 billion figure refers to the projected multiplier effects of financing the private sector.
The US embassy in Guatemala said that both sides would sign a memorandum of agreement on inducing private sector with the $1 billion investment.
DFC works with private sector companies to fund projects. The government of Guatemala will not receive the financing.
DFC is known globally to invest via debt financing, equity finance, political risk insurance, and technical development.
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