If the World Bank is right. Then the DEBT to GDP ratio by now is around 90%.
It took Said Musa, a whole 5 year term of austerity to drop the Belize Debt to Gdp ratio from 120% to 76% and among other things cost him the election. Even presuming current figure is 90% for debt to GDP, The next government coming in, is faced with a choice. Continue the way we are, with a rising Debt to GDP ratio and the current level, if 90%, is already past sustainability point. Or go into another 5 year austerity package? Or say screw it, just take the hit. Make all the lenders take the hit, like the EU has decided to do with GREECE and will presumably eventually do with Spain and Italy?
Look at it this way. The lending banks internationally have few places to put money. They are awash with it. Many are investing in African farm land. For corporate farming for their countries. That is high risk too. Zimbabwe has a debt to Gdp ratio near 300%. Argentina has proven that institutional lending memory is either short ( about 3 years ), or the pressures of having to put money to work, overcomes any memories of taking a loss, or hit among countries that are bankrupt, in which they contributed anyway. Since a political term is a 5 year term in Belize, we have been unable to reduce it to 4 years against the wishes of the pirate political parties so far. So if you have a 5 year term for politics. Do like Argentina, and DEFAULT, let the lending banks take their hit, properly as they should. BELIZE is self sufficient right now economically, without any debts to pay. What would it matter, BELIZE would boom just like Argentina did, with all that loan money forgiven and written off and available to put back into the economy. After three years of being unable to borrow abroad, you would be back with the lending institutions sending salesmen again, to lend you new money, anxious to enslave the economy of Belize again.
From: innovate belize
To: Wendy Auxillou
Cc: Ray Auxillou
Sent: Friday, October 28, 2011 10:38 PM
Subject: Re: Bz-Culture: Questions for the Belize economy.
If go with the data from the World Bank in 2010 it was
On Fri, Oct 28, 2011 at 4:34 PM, Wendy Auxillou
Really? Belize's GDP is more than 2 BILLION BZ$? Sounds incredible to me.
--- On Fri, 10/28/11, innovate belize
As of March 2011, Belize’s total national debt (both external and domestic) was U.S. $1.0156 billion, an amount equivalent to approximately 75.3% of GDP.
On Fri, Oct 28, 2011 at 1:16 PM, Ray Auxillou
1) What happened to the drug tablet business that was in Boom? There was some legal trouble with the USA by the owner, but otherwise it seemed a winner?
2) What does a Board member of BTL get paid?
3) What is the current Debt to GDP ratio for Belize?