by Kristen Ku
BELIZE CITY, Wed. June 19, 2024
The Northern Fishermen Cooperative Society Limited (NFSL) has been given a lifeline by the Holy Redeemer Credit Union (HRCU), which will be assisting the cooperative in the financing of its burdensome $11 million loan. This intervention became necessary after a non-performing loan at the Belize Bank placed NFSL in dire financial straits.
The NFSL was under immense pressure to meet payroll obligations and prepare for the upcoming lobster season, a critical period for the cooperative. Despite HRCU’s willingness to step in and assist, however, the Central Bank had initially blocked the transfer of the loan.
However, in a crucial meeting last week, Prime Minister John Briceño, representatives from the credit unions, the Cooperative Department, and the Central Bank convened to devise a plan to save NFSL. The goal was to find a solution that would allow HRCU to take over the Co-op’s debt under more manageable terms.
When asked, the Prime Minister, Hon. John Briceño, had expressed cautious optimism about the possibility of the Central Bank allowing HRCU to extend financing to the cooperative. “It will allow, depending on what are going to be the terms. We’ve already spoken to the Belize Bank, and we are asking them to write off their interest and penalties so that we can save the institution. So, I think that the Central Bank will give an agreement, provided that these things are met; and once that is met, we will be able to do that,” he said.
This week, the Central Bank agreed to let HRCU help the Co-op. However, several strict pre-conditions in institutional governance must be met before the transfer can occur. These conditions are designed to ensure the long-term stability and proper management of the Co-op, which may take some time to implement fully.
In the interim, NFSL has received funds to maintain normal operations. This financial support is crucial, as it allows the Co-op to continue its activities without interruption, especially with the lobster season approaching.