5. Financial Transparency
5.1 Market Stability
5.2 Independent Asset Valuers
5.3 Data Standards
In-Country Assessment Information

5. Financial Transparency

Goal – A well developed and transparent financial system that includes strong supporting institutions and highly trained and ethical professionals that contribute to effective financial intermediation and deep and broad access to capital and financial services


5.1 Market Stability (Strong)

Core Question:  Are market risks sufficiently transparent and diversified so that efficient capital allocation can occur?

Financial reporting has been fairly solid as the result of programs by organizations such as the International Association of Consultants, Valuators, and Analysts (IACVA), which educated professionals on international standards. The only concern is the time it takes to complete bankruptcy proceedings.

5.1.1 Financial Reporting (Strong)

What is the strength of the country’s auditing and reporting standards? 

Ranked 66 out of 148; Score 4.04 out of 7. Trend ↓

5.1.2 Financial Services (Strong)

Does the financial sector provide a wide variety of financial services to businesses?

Ranked 32 out of 148; Score 5.28 out of 7. Trend ­↑ 

Source: The Global Competitiveness Report 2013-2014, World Economic Forum /

5.1.3 Insolvency Process (Weak)

Ranked 109 out of 188. Trend ↑ What is the average time to complete bankruptcy proceedings?

3 years What is the cost of bankruptcy proceedings as a percentage of the estate?

15  What is the recovery rate of bankruptcy proceedings?

27.7 cents on the dollar

Source: Doing Business 2014 – Closing a Business –Guatemala


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5.2 Independent Asset Valuers (Strong)

Core Question: Do trained, independent and ethical asset valuers exist for all types of assets?

Guatemala has begun to adopt international standards by joining the IACVA. This organization keeps its members at high standards following the IVSC standards. Training and ethical standards are greatly improving which shows Guatemala is headed in the right direction. Survey Questions

5.2.1 Standards (Weak)

SQ 17  How easy is it to find a valuer who implements International Valuation Standards?

Guatemala is part of the International Association of Consultants, Valuators and Analysts (IACVA), which is a not-for-profit organization founded in 2000 to provide worldwide support to professionals who perform valuations or are engaged in fraud deterrence. This organization is the first and only international association to provide such support. Guatemala is an associate member so there is no uniform national standard, but standards do exist and are starting to be implemented on a more consistent basis.


5.2.2 Training (Strong)

SQ 18  What is the level of training of valuers?

“In the Valuation field, IACVA promotes the uniform application of valuation theory, approaches, methods and models throughout the world (best practices).” Also, each IACVA member is responsible to follow international guidelines such as IVSC standards.


5.2.3 Ethics (Strong)

SQ 19  Are opinions offered by valuers free of influence from parties to the transaction?

A developing, independent valuation profession exists and an IACVA compliant code of conduct exists and is sporadically enforced. Guatemala is a country that needs time to get the codes of conduct to be enforced properly. IACVA is continuously implementing its mission and education process to the Guatemalan people, so in time enforcement of codes of conduct will strengthen.



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5.3 Data Standards (Weak)

Core Question: Is accurate property information available electronically in formats that are consistent with international standards?

No clear standardized multiple listing services exist online and electronic data exchange is minimal. Also, the lack of a building code is a big risk for future investments into Guatemala

Survey Questions

5.3.1 Sales & Operating Data (Weak)

SQ 20  A multiple listing service is an electronic exchange system where brokers and agents can widely share contracted real estate listings of properties that are for sale. Do multiple listing type services exist?

There is one dedicated online Guatemala website, however listings are not standardized.


SQ 21  Do resources exist for obtaining building income and expense estimates?

Information not available via desk research.

5.3.2 Interchange Formats (Weak)

SQ 22  Do electronic data interchange formats conform to international standards (ebXML – electronic business using extensive markup language)?

Electronic data interchange formats exist however they are in infant stages of development. The use of ebXML is there, but hardly used for real estate. “Information about properties is stored partially in written records and partially in electronic records. Transactions on properties whose data are in written records are put on hold indefinitely, which discourages private investments in real property”

Source: USAID:

5.3.3 Technical Standards (Weak)

SQ 23  Do building codes and office building measurement standards (ANSI/BOMA Z65.1) conform to international standards?

Guatemala lacks a building code that combines all regulations in the country. Luis Fernando Olayo, A researcher at the Center for Urban and Rural Studies (CEUR) said that “only 5 % of the 334 municipalities have building codes with technical criteria.” Also the “building code and mandates are being revised that all public infrastructure investments must comply with the code’s anti-seismic specifications.”



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