DFC Injects $135M Into Belize’s Economy, With 77% of Loans Going to Women

Over the past four years, the Development Finance Corporation (DFC) has injected $135 million into Belize’s economy, with 77% of its loans being accessed by women. This strong commitment to financial empowerment and economic development has positioned the institution as a leading lender for women in Belize. DFC further cemented its role in the country’s economic resurgence with the launch of its ninth consolidated line of credit, a $40 million loan in partnership with the Caribbean Development Bank (CDB). The event served as a moment of reflection on DFC’s challenging past. Prime Minister John Briceño acknowledged that during a previous administration, rapid expansion efforts at DFC were not adequately managed, pushing the institution to the brink of bankruptcy. However, thanks to CDB’s continued support and the government’s strategic interventions, DFC has made a dramatic turnaround. 

John Briceño, Prime Minister of Belize: “During the Musa administration, which I was a part of, we tried to push a rapid growth with the DFC and in many instances we were not taking the risks that we’re taking were not well measured. And the DFC then got into serious problems, almost in the verge of bankruptcy. We’re grateful to the CDB because the CDB never gave up on the DFC. They continued collaborating, continued working with them. And it’s under the previous government then that they did some sort of refinancing but the management of the DFC during that time has been extremely conservative. It was so conservative that they were losing money every year. And you can’t have an institution losing every year. When we got into government in 2020 the loan portfolio had a default rate of about 26%. And that was way too much. And so we did a number of innovative steps were taken. One is to change the dynamic, the management, to have a more dynamic management. To be able to look at the different sectors were there are opportunities for the DFC when it comes to the development from tourism to women, investment in women to MSMEs. And so by doing that we managed to refocus the DFC. The government made a large capital injection, I think it’s over $30 million, and that allowed them to have a stronger capital base for them to be able to borrow more money to be able to invest. So today it is a celebration.”

A critical factor in DFC’s resurgence was a government-led capital injection of over $30 million, which strengthened the institution’s financial base and enhanced its lending capacity. This move enabled DFC to expand its loan portfolio while maintaining fiscal responsibility. Henry Anderson, CEO of DFC, described the launch as a landmark achievement for both organizations. Anderson stressed that upon him taking over the DFC was on a declining trajectory but the approach taken throughout his tenure not only strengthens Belize’s financial standing but also prepares borrowers for long-term sustainability.

Henry Anderson, CEO, Development Finance Corporation: “If you go back to 2021, that time I started as a chairman, and when we looked at the financial situation of the DFC, we were concerned for the staff because the DFC was on a trajectory of going in the wrong direction. And if the government did not look at the opportunity in the DFC it could have gone the other way to look at maybe closing it down. But you know it was looked at the opportunity so we took the tough steps as was mentioned earlier. But at that time nobody wanted to think that the DFC could even turn a profit and as was said, development is our goal but as a bank you have to be able to create value. And we were told that we needed more staff, you needed a new loan management system, you needed all of these things. And, you know, we had the best year this year, and for the last four years, each year it’s the best year for the previous five years, right? We didn’t hire a lot of staff. We are just about 85% in putting in that new loan management system, so we didn’t do it. We haven’t changed all the policies that we want to change in terms of the credit policies. All of that is still a work in progress. So despite doing all of those things that were said as holy grails, just by having a sense of purpose, changing the energy and the direction of the institution, and going from initiative to what I call finitiative, actually executing and getting it done, the DFC has been able to reach and have the sort of change that we’re seeing.”

The institution’s emphasis on MSMEs, women entrepreneurs, and sustainable development ensures that Belizeans from all walks of life have access to the financial tools needed for success.