Sovereign haircuts / GTM
Guatemala
6 concluded restructurings, between 1856 and 1936. The earliest default they settle began in 1828. The worst cost creditors 56.6% of the present value of their claim, in 1856. The longest gap between a default and its settlement was 28 years.
Every restructuring
Two measures of the same deals, never combined. The present-value haircut discounts what creditors got against what they were owed; the face-value reduction counts only principal written off.
| Default | Settled | Years to settle | Present-value haircut | Face-value reduction | Debt treated (2020 $) | Source |
|---|---|---|---|---|---|---|
| 1828 | 1856 | 28 | 56.6% | 43.8% | $19M | Meyer, Reinhart and Trebesch (2022) |
| 1876 | 1888 | 12 | 55.8% | 11.6% | $110M | Meyer, Reinhart and Trebesch (2022) |
| 1894 | 1895 | 1 | 42.1% | 25.0% | $119M | Meyer, Reinhart and Trebesch (2022) |
| 1898 | 1898 | 0 | 21.9% | 0.0% | $201M | Meyer, Reinhart and Trebesch (2022) |
| 1899 | 1913 | 14 | 20.9% | 0.0% | $144M | Meyer, Reinhart and Trebesch (2022) |
| 1932 | 1936 | 4 | 43.4% | 12.1% | $98M | Meyer, Reinhart and Trebesch (2022) |
Source: Meyer, Reinhart & Trebesch (2022), Sovereign Bonds since Waterloo | Cruces & Trebesch (2013), Sovereign Defaults: The Price of Haircuts | Asonuma & Trebesch (2016) Debt treated is the amount restructured, deflated to constant 2020 US dollars in the source file. A negative haircut means the new instruments were worth more than the old claim. Methodology
Default spells
| Spell | From | To | Years | Restructurings |
|---|---|---|---|---|
| GTM_1828-1856 | 1828 | 1856 | 29 | 1 |
| GTM_1876-1888 | 1876 | 1888 | 13 | 1 |
| GTM_1894-1895 | 1894 | 1895 | 2 | 1 |
| GTM_1898-1913 | 1898 | 1913 | 16 | 2 |
| GTM_1932-1936 | 1932 | 1936 | 5 | 1 |
Source: Meyer, Reinhart & Trebesch (2022), Sovereign Bonds since Waterloo | Cruces & Trebesch (2013), Sovereign Defaults: The Price of Haircuts | Asonuma & Trebesch (2016) Duration counts both endpoints. The spells table also carries a cumulative-haircut column; it is not published here because it does not reconcile with the per-episode haircuts, see the methodology. Methodology
Debt still in default
The Bank of Canada-Bank of England default database records no debt in default for Guatemala in its latest year.
Source: Bank of Canada-Bank of England Sovereign Default Database (CRAG) Bank of Canada terms (attribution). Includes domestic arrears, so it is not comparable with the debt-treated column above. Methodology