Senators Clash Over Debt as Government Tables New Bills

In today’s Senate meeting, several Bills were brought from the House including the Customs and Excise Duties Amendment Bill 2023, the Insolvency and Bankruptcy Bill 2025; the Belize Building Amendment Bill 2025; the Magistrate Court Bill 2025 and the People’s Constitution Commission Amendment Bill 2025.  UDP Lead Senator Patrick Faber voiced strong concerns over what he described as the Government’s excessive borrowing habits. Faber accused the current administration of routinely proposing new loans at nearly every house meeting and highlighted that several ministries’ budgets already account for future borrowing. Faber warned that this pattern of dependency on loans is unsustainable, especially if the country aims to reduce its national debt.

Patrick Faber, Senator, United Democratic Part: “Can we not come to the National Assembly anytime we come and have a loan on the table? This government, Madam Speaker, has borrowed almost $500 million in as many years. Five years, $500 million. These people aren’t playing, Madam Speaker. They are saddling this country with debt. And this is because they have solved the issue of the super bond they claim, which they completely disregard that they created. And I’ll get into that in the budget debate. Completely disregard that they were the ones who created the Super Bond and saddled this country with that albatross, completely. And I’m not sure what the complete relief was Senator Coye I’m hoping will tell us. I will suspect that the relief from my calculations that you got from the Super Bond with the Blue Bond was something around the neighborhood of $500 million Belize. It could be more. And then what you got in terms of relief from the Venezuelans, in terms of the Petro-Carib arrangement was another $300 million, correct me if I’m wrong. So you got debt relief to the tune of about $800 million and you borrow $500 million, which explains thereabouts how the national debt stands at $4.4 billion five years later, when it was $4.6 billion. You all aren’t joking. Unu di borrow, borrow, borrow, borrow. So even though you boast, and I will talk about how you got the debt to GDP ratio to 61% down from 133% in the budget debate, don’t think that I won’t address that but this is not what this particular debate is about. This is about their borrowing, Madam Speaker. And can we come to the National Assembly on any given meeting and not have to borrow?”

During today’s Senate meeting, PUP Senator Christopher Coye offered a strong defense of the Government’s borrowing strategy, countering criticisms raised by Faber. While clearing up the figures that were thrown out, Coye argued that borrowing is a necessary tool for any functioning nation, especially in developing economies where external financing is often vital to progress. He emphasized that the loans being acquired are not being used frivolously but are instead directed toward strengthening the country’s productive sectors such as agriculture, infrastructure, and education.

Christopher Coye, Senator, People’s United Party: “What does the last administration, the UDP administration, what do they have to show for their 12 to 13 years in government? A reduction in the average income per person. People became poorer. Evidently, people became poorer. So Central Bank posts on its website the various loans that the government has on a bilateral basis and on a multilateral basis, we have a very long-standing relationship with the State of Kuwait. I think the first loan that Belize contracted for was for the works at the, the building of the Philip Goldson Airport. Since then they have done a number of other loan arrangements, including under the UDP administration and that includes the Caracol Road I think both phases one and two the Kuwaiti Fund was a co-finance partner in that project and as well, I think, in the Hummingbird from Belmopan to Sibun. So these terms here are not new. These are familiar terms because in the long-standing relationship and an excellent diplomatic relationship we have with Kuwait they have always lent to us on a concessionary basis, on similar terms as those.”

The Budget for 2025-2026 is a total of 1.78 billion dollars.