Guatemala’s membership in the CAF, decided by the central American government, poses significant financial and geopolitical risks to the nation’s stability, as warned by the civic group Guatemala Inmortal in a public letter.
This open letter, dated December 8, 2025, expresses serious concern regarding the Guatemalan government’s decision to use USD 40 million from the International Monetary Reserves to join the Andean Development Corporation CAF-Latin American Development Bank.
The group highlights that the CAF is based in Caracas and has been a key support for Nicolás Maduro’s regime in Venezuela, potentially tying Guatemala to a network of authoritarian regimes. Furthermore, Guatemala Inmortal criticizes the lack of transparency and institutional process breakdown, as this decision was made without congressional approval or consultation with key economic entities.
Context of the Decision
The Guatemalan government advanced in the process of incorporating the country into the CAF – Latin American Development Bank, an action publicly presented as a development opportunity but is in reality a financial and geopolitical decision with significant risks for the nation.
As a result, on December 8, 2025, the civic group Guatemala Inmortal warned that the cost of this membership amounts to USD 40 million, which will be drawn from the nation’s International Monetary Reserves. For the organization “Guatemala Inmortal,” this is considered a risky operation.
They emphasize that the operation, driven without transparency or the proper institutional process, involves the use of strategic savings meant for emergencies. They refer to widespread criticism that argues this membership aligns Guatemala with a bloc of authoritarian regimes, particularly due to the Andean Development Corporation (CAF)’s ties with Maduro’s regime in Venezuela, which they have financed with over USD 500 million.
Arguments Questioning the Legality of Joining the CAF
The objection to Guatemala’s membership in the CAF is based on five central arguments that question the legality, relevance, and consequences of the measure.
Misuse of National Strategic Reserves
The funds for joining the CAF come from the International Monetary Reserves, which are the strategic savings of the country. The primary purpose of these reserves is to protect the national economy against critical events such as emergencies, financial crises, or natural disasters. Therefore, these resources should not be used to finance political projects or capitalize international institutions with specific ideological agendas, as the Guatemalan government is indeed doing.
Links to Authoritarian Regimes
Guatemala Inmortal emphasized the direct connection of the CAF with authoritarian regimes in the region. The entity is headquartered in Caracas, Venezuela, and has been a key financial supporter of Nicolás Maduro’s regime.
Funding the Maduro regime: the CAF has given over USD 500 million to Nicolás Maduro.
International denunciations: this financing continues despite serious international allegations against this regime for drug trafficking, massive corruption, and human rights violations.
Guatemala’s incorporation into this structure suggests alignment with governments that have weakened democracy and the rule of law.
Lack of Transparency and Breakdown of Institutional Process
The process of Guatemala’s membership in the CAF is characterized by complete discretion and the omission of legally established institutional controls.
Secret process: the letter of intent to join the CAF was signed months before the operation was included in the 2026 Budget, without informing the public.
Lack of legislative approval: the Constitution requires that international financial commitments be approved by the Congress of the Republic, a step that was overlooked.
Absence of technical endorsement: the decision did not have the backing of the Bank of Guatemala or the Monetary Board, the technical entities responsible for protecting and managing the International Monetary Reserves.
Exclusion of civil society: there was no consultation with the productive sector, academia, think tanks, or the general public.
Contradiction with National Priorities
The allocation of USD 40 million to an international entity starkly contrasts with the urgent structural problems facing Guatemala, as emphasized by Guatemala Inmortal.
They assert that the Central American country cannot afford to finance external entities when its own basic needs remain unmet. Among others:
Urgent Problems in Guatemala
Lack of medicines
Collapsed infrastructure
Port crisis
Weak economic growth
Increasing unemployment and informality
This operation does not provide immediate benefits for the country but instead increases its financial vulnerability.
Concerning Geopolitical Implications
Guatemala’s membership in the CAF represents a strategic repositioning of Guatemala within a political bloc aligned with the São Paulo Forum.
Members of the bloc: Venezuela, Brazil (under Lula’s government), Colombia (under Petro’s government), and Bolivia.
Characteristics of the bloc: this group is noted for promoting authoritarian models, imposing restrictions on freedom of expression, and implementing economic policies that have led to deep crises in their respective countries.
Guatemala’s Membership in the CAF is Not a Development Strategy
Guatemala Inmortal stated in its letter that Guatemala’s incorporation into the CAF is not viewed as a development strategy, but rather a high-risk political decision with multiple negative consequences.
This jeopardizes national savings by using emergency funds.
It undermines financial institutions by circumventing legal and technical controls.
It aligns the country with authoritarian regimes, damaging its international reputation.
It opens the door to geopolitical pressures that threaten the country’s stability.
Guatemala Inmortal warns that the Central American country could be entering a web of alliances that put its democratic stability, economic sovereignty, and historic relationships with democratic partners worldwide at serious risk.