BELIZE FINANCIAL NEWS AND GOVERNMENT REPORT CARD JUMPS UP TO 47%

UDP Government Report CARD jumps from 43 % to 47 %


GUARDIAN NEWSPAPER FRONT PAGE ARTICLE ON INTEREST RATES
UDP WINS 4 more points for their REPORT CARD! Article on Western Belize Happenings Blog.

Went to the Guardian this week to try and decipher what we could, from their front page FINANCIAL ARTICLE. Bit hard to figure out what the gobblygook was about in the article.
The positives were about some AMENDMENTS to financial laws that rang true. Here they are; the positives.
There is an amendment to be passed to do with Central Bank. The idea is to reduce tha amount any Belize government can bleed Central Bank from 20% which it is now, to 8.5% of the True Range for the past year. This item meets with approval.
Something was said about changing the borrowing practice of the government from FOREIGN LOAN borrowing, to using local TREASURY BILLS, which the BANKS can buy. The government is increasing TREASURY BILL OFFERINGS. It was stated that the BANKS are saying that the country has an excess of LIQUIDITY and that the banks cannot loan enough of their money. Nobody much in the private sector are showing a profit and are reluctant to invest in the economy. One presumes they are talking solely of Belize Currency? At any rate, the idea is sound and one proposed here before. This item meets with approval. Much of the CHOKE on the economy is government instigated regulations and laws, which make small scale entrepreneurial start ups, too expensive.
There was some gobblygook about with lower interest rates, that some banks are now doing; there would be more borrowing and stimulate the economy. Not sure I follow this reasoning? Doesn’t necessarily hold water, there are too many variables. Entrepreneurial start ups need investment capital into share offerings, not loans.
The article had much political hype and otherwise lacked clear thinking, or explaining. The UDP are obviously looking for ways to get some favorable publicity to show voters they are doing things.
Generally speaking we will award 2 points for each item we approved of. For a grand total to the UDP Government Managing Report Card. So they get an additional 4 points for management.