U.S. $25 million loan approved by both sides
And while government was taking steps to maximize its share of future petroleum revenues, Belmopan turned to one of the world’s largest oil exporters for assistance in coping with its more immediate financial needs. While all agreed that the twenty-five million U.S. dollar low interest loan from Venezuela was good news, the transaction did not go unquestioned.
Prime Minister Said Musa
?It is the intention of government to set these funds aside solely to assist the management of our external debt during the remaining of this fiscal year. Madam Speaker, this request is being made in the context of the Finance and Audit Reform Act in April 2005, in accordance with section seven of this act government is seeking the authorization of the National Assembly.?
Patrick Faber, Area Rep., Collet
?Until we can take full responsibility or the government can take full responsibility for the mismanagement of monies, when you tell the Belizean people and when you tell the international community, listen we did wrong by the Belizean people and we want to fix it, but you can?t come and say we want to fix it and never mind what brought us here. That Madam Speaker leaves a sour taste in the mouths of Belizeans.?
Dean Barrow, Leader of the Opposition
?We have to be careful in terms of our foreign policy not to be playing footsie with these latter day socialists. But that apart, and I am sure we will be reassured by the Prime Minister that there are no foreign policy quid pro quos and if we are given those sorts of assurances, and if we can be told what the rate of interest is and if we can be given disclosure with respect to exactly what it is that the monies will be used, which debt with details will be used to retire. Madam Speaker, then I would think that again subject to what my friend from Collet said, we would wish to support the motion because it is the loan is on favourable terms and God knows we can use this kind of a break.?
Prime Minister Said Musa
?Libor ranges somewhere between three to four and a half percent at this time, it ranges, depends on the markets of course and that is rate under which we operating. Usually when a loan is obtained, it speaks of Libor plus. In other words, they would give you a loan for Libor for three percent plus another three or four percent, however, in this case there is no plus. It is strictly a Libor rate for the entire duration of the loan. As far as we are concerned on this side of the house, there is no foreign policy implication, there is certainly no commitment given to the Bolivarian Republic of Venezuela for the benefit of this loan. Absolutely no strings attached, I can make that absolutely clear and certainly we are not playing footsie with President Chavez, President Fidel Castro or anybody else, or President Bush for that matter. We don?t play footsie Madam Speaker.?
