B.S.I. says agreement provides breathing space for finance

We’ve reported that ING and FirstCaribbean International Banks have extended the term of their loans to Belize Sugar Industries Limited by one year, giving B.S.I. up until September thirtieth, 2012 to pay back thirty million dollars. In a financial update issued today, B.S.I. says the new arrangement allows for the commencement of the upcoming crop and provides breathing space to secure a long-term financing solution. The agreement with ING and FCIB has also paved the way for the restructuring of BELCOGEN’s loan facilities. According to B.S.I., they are hoping to secure additional working capital from Tate & Lyle Sugars, which will pay in advance for its shipments to help the cash flow in the industry. The release also noted the signing on Wednesday of the memorandum of understanding between government and sugar stakeholders, which was extended to reflect the term of the ING and B.S.I. loans. As part of the overall financing arrangements, the government has also extended the grace period on the ten million dollar loan to B.S.I. by one year.