S.S.B. to Invest $9 Million in Liquor Distillery

The Social Security Board is proposing to fund the construction of a new liquor distillery to the tune of nine million dollars. S.S.B. has published notice of the loan to Belize Premium Spirits and Liquors Limited. The notice has raised eyebrows and drawn concerns.  Why provide money for another distillery when there is already an over-saturation of available liquor on the local market?  It’s a question that is being asked on the belief that S.S.B. is making a risky investment in a company that remains defunct. Today Chief Executive Officer Deborah Ruiz explained that the company, owned by Waldir Cuello and Irlanda Cuello, had made its first proposal earlier this year, but that it wasn’t considered because the applicant had to make adjustments to the initial amount being sought. Now that it has gotten the go-ahead, Ruiz says the company will be creating more than a hundred jobs. Meanwhile, S.S.B.’s General Manager of Finance & Investment Services, Leo Vasquez explained that S.S.B. ensured that there is sufficient collateral to cover the loan.

Deborah Ruiz

Deborah Ruiz, C.E.O, S.S.B

“We are looking at financing the construction of a distillery equipment and, and some minor working capital with two years moratorium on the principal. Basically, what they’re looking to do is to build distillery so that they can process some raw products both Gold Rum and Coconut Rum for the export market. It is not for local consumption, as far as the proposal that indicated. And then later on, they would top up their products with different variations of rum, I imagine, in terms of what will go to the export market. It’s for 12 years initially, and then we are having an interest rate of 7.35% on the total interest income that Social Security will earn is over 5 million over the period. We do have collateral cover. We have acres of land that the company has put up. We have put up different personal guarantees. In addition, he is putting in his own money, because as I mentioned, he had made an initial request for a larger sum. So that variance he has to put up, and so we’re only putting this here in terms of the distillery and work equipment, and of course, working capital to get started in for the distillery.”

Leo Vasquez, General Manager, Finance & Investment Services, S.S.B

“In this case, about $16 million is covering the $9 million loan request. That’s going to be spread over in tranches. It’s not a one-off $9 million. He’s constructing the distillery over a period of months that is really how it is. But there is sufficient collateral. I was saying, this is not – we didn’t just jump up overnight and decide, but he has put a lot of his money. So there’s a lot of invested money and capital in this project.”