Economist Weighs In on S.S.B’s investment in D.F.C.

Earlier this week, we reported on the twenty-million-dollar loan that the Social Security Board is providing to the Development Finance Corporation to be used on its mortgage program, as well as its real estate, and infrastructure and refinancing programs. S.S.B will disburse the money every two years in tranches of five million dollars. It is an investment that has attracted attention because of the high number of delinquent mortgage loans that occupy the weekly newspapers. News Five turned to an independent Economist, Carlos Magana, to ask his views about the investment that is being made. Magana said that while he does not have a problem with the investment, there needs to be every effort made to ensure that the monies are repaid. 

Carlos Magana

Carlos Magana, Economist

“Investment is necessary. Investment is what makes the economy to be able to grow. If we do not have investment in all sectors of the economy, it stays stagnant. I am sure that the Social Security Board has definitely worked with its actuary to be able to know if there is going to be some sort of investment returns. One thing that we need to remember here in Belize is that the Social Security Board is the largest employer of benefits. Being the largest employer of benefits, then it needs to be able to sustain with time. All those benefits it needs to accumulate and by the generations that we are having today, the life span of individuals is expanding. And therefore, if the life span of individuals is expanding, the Social Security (Board) needs to have funding to be able to do so. Investments are necessary. I do not condemn the twenty million. The only thing that I would be (concerned about) as a contributor is please ensure that the steps to recover that investment are very clear cut. There is no gap. There are no ifs. Let us eliminate the “ifs”; let us eliminate the “buts”; let us do away, before we give the first tranche, let all that be moved away.”