Social Security Board Proposes to Lend Medical Council $600K

The Social Security Board has proposed to lend the Medical Council of Belize six hundred thousand dollars for the construction of a multi-purpose auditorium. The loan facility, according to the Public Notice of Investment, will be at a rate of interest of seven percent per annum for eleven years, inclusive of a one year grace period on principal payment. This particular loan agreement comes a few days after the new contribution rates increase and has left many thinking why would the S.S.B. lend hundreds of thousands of dollars if the public perception is that the fund is low on revenues. Well, Chairman Dough Singh told News Five that the perception is not ignorance but rather a lack of understanding of the S.S.B. system. Singh says that over the past ten years the fund has grown significantly. The fund’s loan facility is an investment mechanism employed by the fund to increase its revenues. The S.S.B.’s seven percent interest offer is of greater benefit than what the fund would have been receiving from the banks. The S.S.B. will continue to pursue investments with good rates and minimal risks. All investments according to C.E.O. Doctor Colin Young are adequately collateralized. He says that in this case, collateral comes in the form of land, building and deduction orders on the council’s cash flows. The council is solely responsible for vetting and licensing of medical practitioners who pay a fee. Loan investments are a method used to increase revenue over a period of time at minimal risk.