‘Barrow Bond’ debated in the Senate

Lisa Shoman

The controversial ‘Barrow Bond’ was passed by the House of Representatives this past Monday.  The debate was steered by the Prime Minister and led to one of the most scandalous House sittings.  In the Senate today, the tone was much different, in fact subdued, when the Bills came up for consideration. There was one voice of opposition and one senator abstained, the rest voted aye. The passage of three bills to amend the existing Central Bank Act, the Banks and Financial Institutions Act and the Treasury Bill respectively, will allow government access to monies from commercial banks to offset its expenditure over the next ten years.  While most of the eleven present voted in favor, senator Lisa Shoman objected contending that the Belizean public will have to foot whatever debt is accrued by G.O.B. over that period.

Lisa Shoman, Senator

“It is really the three bills when you take them together; the bill having to do with the Central Bank and the bill having to do with the financial institutions.  As you know, what this is taken in conjunction will mean that the Government of Belize will be financing its deficit, its monetary policy, its economic policies by way of longer term borrowing and by increasing the ability of being able to issue both T Bills and T Notes for up to ten years. That means that there will be a number of repercussions and to put it in very simple terms what will happen is, because of the legislation that has been passed, commercial banks will be directed by the Central Bank what assets they must have at the Central Bank and they will also be obligated to do certain things.  The effect of which will mean that ultimately it is the savers in Belize who will be helping to finance all the wastage that is occurring in this current administration.”