Local News

The Belize Social Security Board has begun the process of investing in debentures offered by the Belize Electricity Limited. The prospectus for offer of debentures by the government-owned electricity company has not yet been made public; but Love News understands that SSB’s Investment Committee has signed off on the investment of fifteen million dollars in those debentures.  The expected investment has already been gathering criticisms in some quarters. But today, Prime Minister Dean Barrow, while not yet fully apprised of the details of the investment told Love News he favors the decision because there is no risk involved.

Rt. Hon. Dean Barrow

Prime Minister of Belize

“Indeed an investment in debentures which as you know are secured, those are guaranteed at a far better rate than SSB funds are getting in the commercial bank.  I know that that is very much on the table and together with that I believe a smaller amount was being contemplated for investment by way of preference shares, which again as the name suggests would put SSB in an almost unassailable position in terms of returns on their investment but really the details you would have to get from the Board.”

PATRICK JONES

Senior News Reporter

RSV Media Centre

“But as far as GOB is concerned, this is a worthwhile investment?”

Rt. Hon. Dean Barrow

Prime Minister of Belize

“Absolutely because my understanding is that SSB’s money – the monies that would be used for this investment would be earning something like one percent or one and a half percent in the commercial banks at fixed deposits.  I believe that the debenture rates, and again you could check with BEL because I don’t want to mislead but I believe that the debenture rate of interest is seven percent and I believe that the preference share rate of interest is five percent.  It shows that SSB would be doing so very very much better with the returns on this investment than by just keeping the money in the commercial banks and just getting one percent.”

Prime Minister Barrow says that given returns to be had by the investment, he sees no good reason why anyone would have any objection to the Social Security Board putting its money to work for the organization.

Rt. Hon. Dean Barrow

Prime Minister of Belize

“I don’t know what they can be saying because I am saying that especially, look at debentures – those are secured by all the assets of the company and they carry a guaranteed rate, in this case of seven percent.  With all the difficulties BEL under the previous ownership had, the debentures which at that time carried twelve percent were always paid; you have to pay that or the debenture holders will go with all your assets so how can they be anything in the least bit uncertain about SSB investment in debentures with a guaranteed rate of, I think, seven percent but I know it’s less than ten percent as opposed to leaving your money in the bank and getting one percent.  I can’t imagine what they can possibly say.”

Published reports in other sections of the media speculate that the anticipated investment in BEL debentures by the Social Security Board is to bail out a cash-strapped Belize Electricity Limited. 

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