I mentioned this on my last minute' thread but thought it warrented reposting.

Two banks in Guatemala have collapse - a third may follow according to the owner of the B&B I'm staying at in Antigua. Quetzals are in short supply in certain areas - ATMs aren't working - bank lines are long. Travelers checks were recommend by the B&B owner. Check Lonely Planet Thorn Tree. Here's the latest post:

"...There is alot of problems in Guatemala with money. Apparently the banks called in all the old notes to replace them but did not have the pàper to print new ones. So the ATM machines are regularly empty and in some banks they are limiting the amount you can draw at any one time. So take TRavellers cheques in US dollars. If you carry alot of cash you are a walking target ! The locals are getting aware that gringos need money and if there is none in the banks then they must be carrying alot!..."

Another update from thorntree:

"....Update in cash availability situation

I have just read in Prensa Libre that the President of the Bank of Guatemala, Mrs. María Antonieta Del Cid de Bonilla, and the President of the Bankers Association of Guatemala, have announced officiallythat a total of GTQ 4 billion in GTQ 100 Notes have partly arrived last weekend and the rest will arrive next weekend. This means that by next week the situation in all ATM machines in all of Guatemala should have normalised. After that, more cash in GTQ 50 notes will arrive. New GTQ 1 notes will start circulating again, but manufactured in plastic polymer instead of paper, to ensure their durability.

Still not confirmed officially, but rumors has it, that probably this year new GTQ 200 and/or GTQ 500 notes could start circulating. If it is true, it should be announced officially, advertised in the media and at the banks. Don't let anybody fool you, the only legally circulating GTQ notes at this moment are in the denominations of 1, 5, 10, 20, 50 and 100.

I reccommend you always bring some money in cash and/or travellers checques, you never know when it will be useful. I never rely entirely in bank or credit cards anywhere in the World. Don't put all your eggs in one basket..."

Just got home last night from Guat. Money appeared to be available at the banks in Antigua with no problem. We brought cash and travelers checks because we had heard about the problem. We had no problem with cashing travelers checks in the bank in Antigua. In Pana we had no problem changing the travelers checks in a little tienda. The Tikal area was a different story. Most of the ATM's that we used last time are gone. I understand there is still one in Flores but it wasn't working even last year and we had to go into Santa Elena -we didn't try this year. A short tuk tuk ride away from Flores. We saved a good bit of our cash back for this part of our trip.

Lots of stories going around. Some drivers are saying to stay away from banks in some areas because gangs are watching who comes out. Another person said that the Guatemalans didn't get their Christmas bonus because two owners of banks ran away with the money. We always took the conservative route and did fine.

Hi Carta... thanks for the information and follow-up. It's much appreciated. We have scheduled a private tour to Antigua from the port. Since we'll be on a cruise, we could book a ship's tour instead. Do you think the latter would be safer?

Sandy

I always travel with some TCs just as a precaution even tho they are so uncool these days. some of them were acquired years ago!!

Just thought I'd post cos the idea of not having enough notes to feed the ATMs reminds me of going to the PO in Antigua. It is the only PO I ever been to that had no stamps.

The postcards I wanted to send were just stamped - they did get there - but I always buy an extra stamp - a long standing habit - as a super cheap memento of every country I have been do. Failed miserable in Guatemala.

But what a great place to travel, all the same.