G.O.B. invites I.M.F. to approve new measures
With Belize’s financial status now under the microscope, both domestically and internationally, the country is faced with the difficult task of convincing its lenders that the nation is on the road back to financial health. That’s the message coming out of Belmopan tonight following annual meetings in Washington, D.C. with the International Monetary Fund, the World Bank and the Inter-American Development Bank. According to Minister of Foreign Trade, Eamon Courtenay, the discussions with the financial institutions focused on a review of current loans, loan applications pending and programmes already underway in Belize. News 5 understands that topics on the table also included the Prime Minister’s short-term plan, involving a thirty-five million dollar budget cut: thirty million coming off capital spending and five million from the recurrent budget, as well as the refinancing of loans from the Royal Merchant Bank of Trinidad and Tobago and the International Bank of Miami. Courtenay says that Government has asked the IMF to dispatch a team to Belize with the specific purpose of having the Fund vett and agree that the measures put forward by the Musa administration are sufficient, prior to the official Article Four visit by IMF next year when a complete financial review will be conducted. The team is scheduled to arrive in Belize on October twenty-fifth. This afternoon, the Prime Minister released this recorded statement to the media elaborating his Government’s steps forward.
Prime Minister Said Musa
“While the economy has grown tremendously, over the period 1998 to the present, we have the fiscal deficits and the public debts to address now. In addition, the DFC, which had been a key institution in promoting growth and expansion in housing construction, agriculture, services and the social sector in particular, student loans for education especially U.B. and other University education. This institution, the DFC, was now facing a difficult cash flow situation. So the DFC now has to be liquidated; assets have to be sold in order to return it to its core mandate on a stable and sustainable basis. I should emphasize that I have made it clear to the IMF, that Belize was not seeking to access resources of the funds by the way of any structural IMF programme rather we are interested in having the Fund work with us in monitoring our own programme, our home grown programme. This can be achieved with technical assistance in specific areas such as Government expenditure and debt management and improving economic and fiscal data dissemination. I also indicated to the officials of the IMF, the World Bank, and the IDB that it would be our preference if all three institutions, as well as the Caribbean Development Bank would work in a coordinated and collaborative way with Belize in providing advice and recommendations.”
We understand that a technical team comprised of Dr. Carla Barnett of the Ministry of National Development, Sidney Campbell of the Central Bank, Financial Secretary Hugh McSweeney, Joe Waight of the Ministry of Education, Nigeli Sosa from the Ministry of Natural Resources and Chief Executive Officer in the Ministry of Foreign Trade, Jose Alpuche, continues to report monthly to the Public Finance Committee regarding the status of Belize’s revenue and expenditure. Sources in Belmopan indicate that while revenue from sales tax is performing well, other sources like land tax, remain below projections. At the same time, expenditure continues to exceed original estimates. Belize was represented in Washington by Prime Minister Said Musa, CEO Dr. Carla Barnett, Minister Eamon Courtenay and Ambassador Lisa Shoman.
