REPORT #561 November 2002

Produced by the Belize Development Trust

1) The Belize total debt obligations have now gone higher and reached 80% of GDP according to the IMF. Which in translation we can only draw an analogy. Argentina started to collapse when their debt reached about 47% of GDP.

The PUP though have borrowed to pay previous borrowers, to pay previous borrowers and each borrowing increases the debt by costs, studies and interest additions. At the moment Belize has a breather designed to get this PUP political gang out of office without a collapse.

By having borrowed a BALLOON loan to pay other due loans. In a balloon loan you only pay interest. The PRINCIPAL comes due next term, I believe for whoever gets the sticky end of the stick?

2) Using last year's estimated annual government revenue of around $372 million Belize dollars, we are currently paying $201.62 million of that annual income to pay interest payments according to IMF estimates. Which in turn has to be turned into cold foreign exchange. Debt service is about 54% to cover the interest payments alone of our income in other words. I THINK we are only paying interest, but for all I know, we may not even be paying ALL the Interest??? The IMF complains about lack of accurate statistical and financial recording keeping by this political autocratic government.

3) The Belize Development Trust stands ready to submit a NATIONAL PUP BANKRUPTCY ACT, to offer 20% on the dollar for outstanding debts in the form of BONDS at 1.47% interest to ALL creditors of the Country of Belize. Those creditors that do not accept within a 60 day term offering, will simply have their debts wiped off the books by the NATIONAL PUP BANKRUPTCY ACT. We stand ready to assist and serve the people of Belize in this crisis with technical assistance, some logic and common sense!

4) Unfortunately, the makeup of the Senate was expanded this political term, removing any minor check and balance to unwise borrowing and spending. There is absolutely no method existing in this Constitution of Belize today, to check unwise policies by an elected autocratic dictatorial one party government. The ruling party can by law, do anything it pleases on any subject, at any time. They can invade your home, they can kill you, jail you and there is no recourse in law under this Constitution. It is rule by individual Cabinet Minister DECREE. That the excesses have not been worse, is due to common sense and perhaps fear of civil war and political assassinations. How long this situation will hold, is anybody's guess? It will only take some young hot head to start an irreversible cycle of political violence.

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