Social Security Board Expects Promising Returns on $20 Million Investment

By: Omar Silva, NP Staff Writer

Belize City: Saturday 10th June 2023

In a bid to serve the best interests of Belizean contributors, the Social Security Board (SSB) has recently made a strategic move by investing $20 million in Belize Water Services Limited (BWSL). The SSB's decision is aimed at bolstering national development while fulfilling its mandate to invest on behalf of contributors. With a coupon rate of 4.5 percent per annum and a ten-year term, this investment is poised to generate substantial returns.

The SSB, as a statutory body, diligently adheres to a set of investment principles when making financial decisions. After careful evaluation, the board concluded that investing in BWSL aligned perfectly with its goals and criteria. As a result, the SSB made the bold move to inject $20 million Belize dollars into the company.

Under the terms of the investment, the SSB has purchased stocks in BWSL, which will be held for a duration of ten years. This long-term commitment ensures stability and allows for potential growth and capital appreciation. The coupon rate of 4.5 percent per annum guarantees an annual return on the investment.

CEO of the SSB, Deborah Ruiz, expressed confidence in the investment, stating that it had undergone rigorous scrutiny and fulfilled all investment principles. The SSB expects the returns to be highly advantageous, benefiting both the organization and its contributors.

While the exact returns depend on various factors such as compounding and stock performance, it is estimated that the SSB will earn $900,000 Belize dollars in interest annually, representing 4.5 percent of the initial $20 million investment. Over the ten-year period, this steady stream of interest will contribute significantly to the SSB's financial portfolio.

Additionally, the investment presents an opportunity for capital gains. If the value of BWSL stocks increases during the ten-year term, the SSB stands to gain further profits when it decides to sell the stocks. However, it is important to note that stock values can fluctuate, and there is a level of risk involved.

By embarking on this investment endeavor, the SSB aims to provide its contributors with a comprehensive understanding of its strategic actions. The investment in BWSL not only showcases the SSB's commitment to nation-building but also its dedication to maximizing returns for the benefit of contributors.

The SSB assures Belizean contributors that their hard-earned contributions are being responsibly managed. The investment in BWSL, with its potential for lucrative returns, exemplifies the SSB's commitment to securing a prosperous future for all Belizeans.

As the investment unfolds over the next ten years, the SSB will closely monitor the progress and ensure that the interests of contributors are safeguarded. The board remains dedicated to making informed investment decisions that align with its principles and contribute to the overall financial stability and growth of the nation.

In conclusion, the Social Security Board's investment of $20 million in Belize Water Services Limited with a coupon rate of 4.5 percent per annum for ten years demonstrates its commitment to serving contributors' best interests. This strategic move aims to generate substantial returns, both through annual interest and potential capital gains, providing a solid foundation for Belize's economic progress.