FINANCE MINISTER OF BELIZE FACES FINANCIAL CRISIS

Finance Minister of Belize, Dean Barrow, Prime Minister and party leader of the UDP holding government.




FINANCE MINISTER OF BELIZE FACES FINANCIAL CRISIS

* Reduced government income revenues for 2008 were quoted at $680 million. The fiscal year runs from April 1st to April 1st.

* The interest debt load on the Belize Bonds are about $260 million for 2009 April 1st to April 1st 2010.

* The government costs about $476 million in 2008, but is continuing to expand during the 2009-10 fiscal year. What the end cost will be nobody actually knows yet?

* The interest debt load on the Belize Bonds are expected to accelerate by contractual agreement in balloon payments during 2010. The amount is roughly $500 million as a fair guess estimate. We are not counting the other debts of this government.

The National Debt of Belize is currently estimated at 83% of GDP. We need below 3% of GDP to be a viable country. How to get there though?

You do the math! Impossible!

So far the Finance Minister has only suggested more BORROWING of more LOANS. If he can find any?

* TO MAKE THINGS WORSE, THE 2008 -2009 TOURIST SEASON DROPPED 11%, HURTING GOVERNMENT REVENUES. THE 2009 – 2010 WINTER TOURIST SEASON IS PROJECTED TO DROP BY 30%. TOURIST TAX REVENUES ARE ABOUT ONE THIRD OF GOVERNMENT TOTAL REVENUE TAXES.

• WHAT DO YOU THINK IS GOING TO HAPPEN? WHAT WOULD YOU DO IF YOU WERE FINANCE MINISTER OF BELIZE? ( and no, shooting yourself in the head with a pistol is not considered a viable option - ( grin! )( light joke intended )