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Central Bank Liquidates Four Credit Unions

Four credit unions are in the process of being liquidated by the Central Bank of Belize.  The notice came out on April 3 from the Registrar of Credit Unions, Ambassador Joy Grant.  The Police Credit Union Limited is being affected after it failed to meet membership threshold as required by the Credit Unions Act.  The Citrus Growers and Workers; the Civil Service and the Mount Carmel Credit Unions are referred to as insolvent; meaning that they are beyond fixing and are bankrupt.  The Central Bank of Belize is now currently in the process of selling off as much of the credit unions’ assets as possible in order to be able to pay off the monies owed by them.  Once liquidated, the claims against the credit unions will take priority and will be paid off if the monies allow.  According to the Central Bank of Belize, the credit unions got to this point primarily because the members were not paying back their loans.  Love News asked the Central Bank of Belize to explain the systems in place that oversees credit unions with an aim to avoid closures; their response was, quote, “The Central Bank became the regulator for credit unions in 2005, at that time the credit unions that are being liquidated were already insolvent.  A number of attempts were made to revive these credit unions to no avail.”  End of quote.  The Citrus Growers and Workers Credit Union was opened in March 1999; the Civil Service Credit Union was opened in December 1948; the Mount Carmel Credit Union was opened in December 1958 and the Police Credit Union was opened in January 1949.  The closure of these credit unions are in accordance with Section 69 of the Credit Unions Act.