OPIC'S REQUEST FOR GUIDANCE ON LOAN TO PEGGY SA

UNCLAS GUATEMALA 000941 SIPDIS PASS TO OPIC FOR ELENA GONZALEZ E.O. 12958: N/A TAGS: EINV GT SUBJECT: OPIC'S REQUEST FOR GUIDANCE ON LOAN TO PEGGY SA REF: SECSTATE 52795 The Embassy has no negative information on the participants nor the project involving Peggy S.A. In regards to the local real estate market, there is currently increased investor optimism following the January inauguration of President Oscar Berger, who is widely seen as "business friendly." Zone 10 where the project is proposed, is among Guatemala City's most choice areas and includes the upscale "Zona Viva" hotel and restaurant zone. Guatemala's weak judicial system, however, continues to add risk to local investment. Investors in real estate need to be especially cautious in ensuring that they receive clear title to land they purchase. HAMILTON