Country Report Belize October 1996 Main report

Economy: Important new loan financing is secured

A loan agreement was signed on June 21 with the Export-Import Bank of Taiwan. Starting in January 2000, the loan will provide US$26.1m in budgetary support and trade finance over a period of 17 years, at a rate of 5%.

On July 31 an agreement was signed with the Kuwait Fund for Arab Economic Development for a loan of KD1.6m (US$5.3m) to finance improvements at the Philip Goldson International Airport and the San Pedro domestic airport. The loan is at 3.5% over 20 years, with a four-year grace period.

Also in July, the Caribbean Development Bank approved financing of up to US$9.1m for the Belizean Development Finance Corporation (DFC). The funds will help the DFC to continue lending activity in agriculture, industry, housing, tourism and education, and allow it to create new lines of finance for small and micro enterprises.

The Central Bank of Belize announced a Bz$24m bond issue in July to finance the construction of its new headquarters. The bonds will pay 11.75% annually over seven years.

Most recently, the government has announced that it intends to channel $14m made available by the World Bank into its newly established Social Investment and Basic Needs Trust Funds, while a global loan of Ecu2.5m (US$2m) for the funding of investments in small and medium-sized enterprises has been awarded to the DFC by the European Investment Bank.

© 1996 The Economist lntelligence Unit Ltd. All rights reserved
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