P.S.U. Concerned about Proposed S.S.B. Loan to Belize Elementary School
A public notice of investment was published in the local newspapers by the Social Security Board where it proposes to lend three hundred thousand dollars to a private school, the Belize Elementary School. The loan facility is for fifteen years at an attractive interest rate of six percent per annum. The timing of the proposed investment, especially during a pandemic, is raising eyebrows and the Public Service Union is concerned about the risks and the financial stability of the school to repay the loan.
Dean Flowers
Dean Flowers, 1st Vice President, P.S.U.
“Every time contributors’ monies are invested, it has to be a concern for every contributor to the fund. But I want to state that as long as the Social Security Investment Committee does its due diligence is able to ensure low risk investment, is able to ensure acceptable returns. As we know the six percent may seem low to some, but those in the financial industry would know it is a decent return considering what the banks are offering or any other investor out there may be prepared to offer. So we are not concern that there is a proposal for a loan; our concern is with ensuring that it is low risk; that the elementary school is in a solid financial position to be able to repay the loan and that there is adequate collateral to secure the loan beyond its face value. The timing of the loan is obviously not the best, especially considering that we are all oblivious as to what the future holds. I believe that the prudent thing perhaps that people would want to see is for the board to hold back on that loan until things return to normal, whereby the school resumes its normal activities, fees are being paid, children are going back to school and the economic stability of that institution is restored.”
The N.T.U.C.B. holds two seats on the Social Security Board and a seat on the Investment Committee.
