The Belize City Council is preparing to deal with seasonal cash flow issues that occur this time of year. The Municipal paper, short-term financing tool is expected to raise $6 million dollars in short-term securities structured over three tranches. The tranches will have pay interest rates of 3.20%, 3.45%, and 3.70%, which is much higher than current lending institutions. The Mayor, Bernard Wagner says that the council could perform much better under the bond which could be ready in the next month.
Bernard Wagner – Mayor of Belize City: “Well, we are very close I believe to the end of this road with the bond, this bond here will really impact the lives of the city residents. We have extensive infrastructural works that we want to complete for some of the residences. Aside from smoothing out our cash flow, the bond will obviously give you some bit of leverage to be able to meet some of the requirements that you need for a city, to make the citizens and the city quality of life better so I am relying heavily on the good graces of the Prime Minister. He is a man of his word, he has shown me so far that he is a man of his word so I am relying on him to get this done for us, not only for the Belize City Council but the for the residents of the city. The residents of the city will be watching this one here very carefully.”
Jose Sanchez: “You said you had potential investors into the multimillion-dollar bond waiting to invest?”
Bernard Wagner – Mayor of Belize City: “These are institutional investors, listen, the banks are not paying anything on money right now, the banks are paying less than 1% on term deposits, 1 % on cash deposits. This bond gives the institutional investors the opportunity to earn somewhere between the range of 3% to 4% on any of tranches in the bond so it is a good opportunity for investors, before even subscribing, before even going public we have had a subscription of over 6.7 million already subscribed for in the bond.”
Mayor Wagner is hoping the Minister of Finance and Prime Minister will give his blessing on the proposed bond.