Belize Advances CABEI Subscription for Regional Financing

The Government of Belize today moved forward with its subscription to the Central American Bank for Economic Integration (CABEI), a step, it says, will strengthen the country’s access to regional development financing.  The motion, tabled by Prime Minister and Minister of Finance John Briceño, seeks the National Assembly’s approval for Belize to subscribe to 4,000 Series “B” shares in CABEI, valued at US$40 million. Of this amount, US$10 million represents the payable capital, to be settled in four annual installments of US$2.5 million each, while the remaining US$30 million is callable capital, only due if requested by the Bank.  According to the Prime Minister, full participation in CABEI opens the door to new opportunities for economic growth, infrastructure investment, and resilience-building in Belize.

John Briceño, Prime Minister of Belize: “Now being a shareholder even though a small shareholder, we have a bigger say in the affairs of CABEI. We will be having more access to funds especially during national emergencies and this move will also help intensify our regional economic integration. For countries like ours, like Belize, access to timely, affordable finance has consistently been an obstacle along the path of economic development and transformation. Unfortunately there is no magic silver bullet to this problem. Working with multilateral development banks, climate finance agencies and bilateral partners all serve to support overcoming such hurdles but they take too long. When a hurricane hits us we can’t wait a whole year to get funding, we need funding immediately. Since the onset of our administration CABEI has proven to be one of those partners upon we can rely not only for loans but for much needed grants in the events of natural disasters. CABEI has been a great development partner for example right after we won elections in 2020 when we were affected by Hurricanes Eta and Iota CABEI assisted Belize with about $1 million US dollars or $2 million Belize dollars. They gave us a grant. And since November 2020 CABEI has assisted Belize with over $16,796,524.94 in grants. Mr.Speaker and opportunity became available for Belize when as I mentioned in 2023 we asked to subscribe to the shares and the board accepted that we can subscribe to the shares. And that happened because of the relationship we have been building with CABEI over the past four years going on to five years.”

Objecting to the subscription was the Leader of the Opposition, Tracy Panton.  According to Panton, the 40 million US dollars is exorbitant and could be better utilized.

Tracy Panton, Leader of the Opposition: “This money, Mr.Speaker, is not going to Belizeans but to bankers. And what about the callable capital risk ? $30 million US is callable which means that Belize may be forced and can be forced to pay it whenever CABEI demands it. This, Mr.Speaker, is a hidden debt. A burden that could appear, that could appear when we least can afford it. The question is where is the risk assessment ? Where is the government’s plan to protect our tax payers ? You see Mr.Speaker the Prime Minister said that Belize having access to affordable loans is challenging but that is not the history of this administration. At this House meeting alone we are going to be reviewing five loan motions.”

According to the government, the deeper engagement with CABEI will provide Belize with stronger financial tools to advance its development agenda. Approval from the National Assembly is required before the Minister of Finance can finalize the subscription.