P.M. says D.F.C. not harmed by Cabinet decision
From his office in Belmopan today, Prime Minister Said Musa responded to the union’s allegations that Government has not kept its part of the bargain when it comes to keeping the union informed. As for the future of the D.F.C., it would appear that the union’s fears of liquidation may be well founded.
Said Musa, Prime Minister of Belize
?That may well be so but that?s a matter between the Union and D.F.C. D.F.C. is charged with the responsibility of, at the board level, to keep the union informed as to every step of the way. But in fairness to D.F.C., I must say that this cabinet decision was taken prior to finalization of the discussions with the D.F.C. So in a sense, the D.F.C. could not have informed the union about it. It?s a cabinet decision.?
?The government would have to absorb it. It would be no loss to the D.F.C. as such. The government would have to cover it. Government has invested large sums of money in D.F.C. so it?s really a set off to what government?s equity is in D.F.C.
?The objective is to wind down the D.F.C. and of course put in place at the same time, simultaneously, a similar type structure, because we will always have a need for financing mechanism to assist with students, to assist in housing and to assist with development generally. In other words, development finance will always be needed for a growing country like Belize. But yes, we have taken the policy decision to wind down the D.F.C., but we are doing it in an orderly fashion. Because we are working also with the various institutions that have been working with us the InterAmerican Development Bank in particular, who?ve been assisting us in this whole work out process.?
Janelle Chanona
?You spoke earlier about Government?s equity in D.F.C., i.e. taxpayers. Would you have any message to taxpayers about these exercises??
Said Musa
?Well the whole point of the exercise is to ensure that we get as much value for money. But it?s inevitably in a development institution that there will be losses. People just default on their loans. In many cases they just can?t. I can think of many low income housing who just can?t pay on time. It?s not the policy of our government to put people out of door, and so we?re doing everything possible to ensure that people can keep their homes. But of course they have a responsibility and obligation to pay as well but we have to make it affordable. And this is why we have extended the schedule of payments to make it as affordable as possible.?
