According to a report from Cabinet, EXIM will release the funds in two payments: $30 million this coming January and $20 million in January 2007.
Why does GOB have to borrow $50 million from Taiwan? GOB?s story is that it needs the money for ?balance of payments support? over the next two years.
This means that the money goes primarily to offset imbalances in trade, due to heavy importation. The new injection of funds would also partially alleviate the scarcity of foreign exchange, necessary for the country to fulfill its international financial obligations.
At the meeting of the House of Representatives on Friday, September 30, 2005, the House of Representatives had approved the buy-back of 89.68% in the BWS shares, which was to be initiated with an advance of US$14.9 million from a concessionary loan from the same bank.
The last two transactions are a major swing from GOB?s recent borrowing trend, whereby its primary source of funds was the commercial banking sector abroad.
With a debt to GDP ratio above 100% of GDP, and credit ratings at all-time lows, the Government has recently announced plans to undertake a further reprofiling of its debt obligations.
On November 21, GOB announced that it has hired the investment bank, Houlihan Lokey Howard & Zukin, based in Los Angeles, California, to provide the Government with financial services.
The agency, it said, would ?analyze the public debt portfolio and assist the Government in its public debt strategy.?
GOB had also said that it was in the process of implementing a comprehensive programme to correct the imbalances that are presently affecting the economy.
Apart from the $50 million EXIM loan, another point of discussion in the House tomorrow is expected to be the Caribbean Single Market and Economy (CSME), due to come on stream in January 2006.
According to GOB, there are three pieces of domestic legislation that have to be passed to give the CSME full effect in Belize: (1) the Caribbean Treaty on Mutual Legal Assistance in Serious Criminal Matters, (2) Justice Protection, and (3) the Caribbean Community Movement of Factors Amendment.
A third point on tomorrow?s agenda is the Belize Bank Bill, which is a bill to provide for the vesting in the Belize Bank International Limited of certain international businesses in Belize of the Belize Bank Limited.
The Senate is scheduled to hold a special sitting on Monday, December 19, to consider the matters that would be passed in the House on Friday.