Emerging Markets Rates and Currencies Handbook

93 Citi | Emerging Markets Currencies Handbook 2021 Deal Management Rollover: Rollovers are allowed. The bank must be notified at least 2 days prior to expiry. That is also the earliest that the bank can advise on the FX amount. Unwinding: Permitted. Net settled. Early Maturity: Permitted. Gross/net settled. Documentation Requirements FX Spot: An account with Citi is required. No additional documentation is required. Non Delivery and Full Delivery forwards are available; both can be traded onshore and offshore. No regulatory documentation is required, only the forms from the Intendencia de Verificacion Especial mentioned above. Citi requires all clients to sign a Master Agreement before closing any forwards. Forwards are available in GTQ against USD with tenors from 7 days to 365 days. GTQ Forwards are not traded online. Trade flows No local law documentation requirements. Capital flows/FDI No local law documentation requirements. Interest rate markets Rates trading is mostly concentrated in the cash market. Bonds issued by the Government of the Republic are mostly bought by market participants as a buy and hold strategy. There is no swap curve as the market has not developed yet a floating benchmark. Banks rely on the repo and reverse repo market to address short term liquidity needs, as secondary markets for government securities are not fully developed. Citi makes markets in short and long term rates as needed by corporate clients. Citibank, N.A. Guatemala Branch 15 Calle 1-04, Zona 10, Guatemala City, Guatemala, 00106-2000 FX Sales Contact: +50 2313 2647 Guatemala Item Inter-Co Debt Offshore Bank Loans Offshore Local Borrowing Derivatives Equity W/H Tax 10% WHT No WHT No WHT No WHT (*) N/A Deductibility of interests Not deductible Fully deductible N/A N/A Deductibility of FX losses Deductible only when the loss is materialized in an FX trade N/A Other taxes, duties N/A N/A N/A N/A N/A Comments N/A N/A N/A (*) requires analysis and confirmation from the client’s tax advisor N/A Note: Citigroup Inc. and any of its affiliates do not provide accounting, tax, or legal advice. Please seek advice from a relevant licensed advisor. Source: Relevant legislation, publicly available sources. Subsidiary Funding — Tax Consideration Tax Summary — Guatemala