Belize Grapples with Loan Repayment Challenges Amidst Pandemic

Belize Grapples with Loan Repayment Challenges Amidst Pandemic

The Covid-19 era in Belize saw banks grant moratoriums on loan payments due to loss of jobs or temporary cuts in salaries.  For many, the repayment of loans was a challenge, and continues to be a challenge as it had taken a while before those laid off could have regained employment.  Governor Kareem Michael explained that there were some loans that could not have been recovered.

Kareem Michael, Governor, Central Bank of Belize: “Some of these loans were deemed unrecoverable. The Central Bank had crafted a well-developed, a good strategy to deal with the impact of COVID on asset quality and loans and then we devised an exit strategy for the system to come safely and cleanly out of this huge impact on asset quality. And we see that it’s working, that the strategy is working because we have non-performing loan ratio below the benchmark and capital adequacy above the benchmark on a system-wide basis.”

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