The Secured Transactions Act is intended to promote the use of different types of secured transaction in order to encourage and guarantee credit obligations. The executions provided in the the act are becoming an important tool in Guatemalan law, since they offer an expeditious means of resolving disputes and help to avoid the lengthy formalities and procedures laid down in the Procedural Regulations.
The relatively new Banks and Financial Groups Law has been tested by the failure of two banks in less than six months. The failures have been well handled, even though several disgruntled investors have filed court actions objecting to the measures taken by the authorities. The events have led to a rapid consolidation of the market and demands for increased public scrutiny and regulatory action.