Derisking Poses Huge Threat to Belize, Says PM

Dean Barrow

The PM touched on a number of hot-buttoned issues this afternoon. The issue of the loss of U.S. correspondent banking relationships due to de-risking is poses as an existential threat to the economy, says the Prime Minister. Last year, the Bank of America severed ties with some local banks, disrupting wire transfers and other online financial transactions.   According to reports reaching News Five, Scotiabank and Atlantic Bank International will manage to retain some form of correspondent banking relations. Barrow says that he is conducting meetings, and has set up others with relevant parties.

Prime Minister Dean Barrow

“I’ve met with the U.S. Ambassador; our ambassador in Washington is trying to secure me appointments with the State Department, with the U.S Treasury, with the World Bank, with the Fund, with two regulators—the FDIC and the Office of the Controller of the Currency. One of our difficulties is that apart from the tier-one banks, smaller banks, community banks, state banks; in the case of credit card settlements, it’s a community bank that had agreed to do that for Belize Bank and for Heritage after the correspondent banking relationship was cut off by Bank of America. That bank has now indicated that by the middle of next month, it is looking to discontinue even that sort of less comprehensive relationship. So even the question of the credit card settlements is now in some jeopardy. That’s the reason why I want to talk to both FDIC and the Office of the Controller of the Currency because those are the regulatory agencies for the state banks and for the small community banks.”