But there is still one more hurdle to overcome in Sugar Industry

The House met in special sitting today to approve a sugar loan to the cane farmers. The ten million dollar loan is for five years including a grace period on principal repayment of one year. The interest rate is seven point five percent per annum on the declining balance. It will be disbursed in two payments of three point two million and six point eight million dollars by the end of the year. The collateral is sixty-nine point twelve acres of land at mile five on the Western Highway. Members on both sides of the house supported the loan and the prime minister wound up the debate. And while the loan was approved, it doesn’t mean the cash becomes available immediately.

Dean Barrow

dean barrow

“Instructions from B.S.I. to I.N.G. Bank as its facility agent under the working capital facility agreement between B.S.I. and I.N.G. and F.C.I.B. Banks to pay interests and principal as they fall due under the GOB loan agreement from B.S.I.’s account at I.N.G. Bank, legal costs to be borne by B.S.I. and whereas the government of Belize is desirous of obtaining the approval of the national assembly by way of a resolution.

“I am happy yet to hear them support what this motion is about. We are not yet home and dry. Remember that as I made clear at the press conference, we will without a doubt pass the motion today. I am absolutely certain the senate will approve it tomorrow. But we cannot lend the money to B.S.I. B.S.I. cannot draw down on this money except B.S.I. receives the waivers from the banks. I checked this morning. I am now being told because of today being turkey day, Thanksgiving Day and this being a long weekend; the holiday extending all the way through until Monday, it does not appear possible to get the consent of the banks before Monday. While this government is completely committed to the industry, we cannot lend because B.S.I. cannot borrow, unless and until the banks give waivers. I have already started making calls and will see a couple of ambassadors because if for some reason, we have no sense at all that the banks won’t ultimately agree, but if for some reason they don’t, then I—bad back and all—start catching plane immediately to go to the capitals where perhaps we can get some assistance because in that scenario, I have to try my level best to find the thirty million U.S. dollars that will buy off I.N.G. and the F.C.I.B. because we must have this industry continue.”

The Senate will meet on Friday to rectify the loan, which will be used to pay the third payment to cane farmers.