Office of the Prime Minister

Cabinet Meeting of January 24th, 2006

Belmopan - 25 January, 2006.
Cabinet met in regular session on Tuesday, January 24, 2006.

The following items are submitted for public information:

GOB to forgive thousands of DFC loans

At its meeting today Cabinet agreed to forgive more than five million dollars worth of loans owed to the Development Finance Corporation by 1,525 Belizean small farmers and hurricane victims. The decision to forgive the debts was taken in the context of the winding down of DFC’s loan portfolio and the clearing of special DFC loan schemes.

Cabinet approved the write-off of $5,868,435 for principal and interest, as well as $18,826 for cancellation of fees for recorded mortgages in an effort to assist small farmers of the Northern and Southern districts, as well as hurricane victims who received DFC’s assistance for home and business re-establishment.

The final value of the loans will be absorbed by the Government and offset against amounts owed to the Government by DFC. The 1,525 Belizeans who will benefit from this initiative will all receive Final Payment Certificates to close their accounts.

Belize to join CABEI

Cabinet has approved the signing of an Agreement to allow Belize to be incorporated as a non-founding beneficiary member of the Central American Bank for Economic Integration (CABEI). The Agreement will require ratification by the Senate.

The Bank was established in 1960 by the Governments of Guatemala, El Salvador, Honduras and Nicaragua; later the Republic of Costa Rica signed the Agreement and also became a member of the Bank.

The Central American Bank for Economic Integration has made a notable contribution to the region’s social and economic development as well as to the Central American countries’ integration process. CABEI has programmed for the next two years an investment of 2 billion U.S. dollars toward poverty alleviation, the integration process and support to the improvement of the region’s business climate.

The status of non-founding beneficiary member will allow the public and private sectors in Belize to benefit from projects and programmes financed by the Bank.

In another development, Cabinet has requested the Development Finance Corporation to arrange to open the various bus terminals countrywide to accommodate commuters. The terminals form part of the former Novelos Bus line property passed over to the DFC in the liquidation of Novelo’s assets and have been closed on the dissolution of the receivership.

The next Cabinet meeting will be held on Tuesday, February 7, 2006.

For further information contact:

ROBERT LESLIE
Cabinet Secretary

January 24, 2006.