Belize Approves Three Loans from Inter-American Development Bank Despite Opposition
By: NP Staff Writer
Belize City: 15th February 2023
The Government of Belize has secured three loans from the Inter-American Development Bank (IDB) to fund various initiatives. The Senate approved the loans despite objections from UDP senators who were dissatisfied with the lack of detailed information provided about the loan contracts. The Leader of Government Business in the Senate, Hon. Eamon Courtenay, acknowledged the oversight and eventually provided the missing annexes.
The first loan of $8 million USD will be used to simplify and automate investment procedures through the creation of a Digital Single Investment Window and a Foreign Trade Single Window. Senator Kevin Herrera pointed out that the private sector has been requesting this development for decades.
The second loan of $10 million USD will focus on digitalization across the government and private sector. The program aims to promote the growth of firms, efficiency of firms through digitization of licensing processes, and reduce costs for citizens by digitizing registration services.
The third loan of $15 million USD is earmarked for climate-resilient farming initiatives to develop sustainable farming systems for agricultural groups and MSMEs. However, Lead Opposition Senator, Hon. Michael Peyrefitte, expressed dissatisfaction with the lack of detail provided and the speed with which the motion was passed.
Despite objections from the UDP senators, the loans were ultimately approved by the Senate. The government defended its borrowing, with Senator Chris Coye stating that domestic debt has only increased by $15 million USD since the change of government, while Senator Herrera emphasized that the funds were being borrowed for the right cause.
The loans' approval has raised concerns about excessive borrowing, given that the Prime Minister had promised to curb borrowing during his election campaign. The lack of detailed information provided has also led to criticism from opposition senators who believe that they were unable to properly debate the motion.