Last week the Prime Minister told us that the fate of government's U.S. $225 million bond would be decided by Friday, July 2nd. Well that date has come and gone, and no final decision has been announced. The most that we've been able to sound out form government sources is that Finance Minister Hon. Ralph Fonseca who's been away on bond business for almost two months solid is hoping to reduce the bond offering into smaller allotments, and float U.S. $125 million at marginally less than 10%.
Again, from what we've been able to find out, this is the best that may be salvaged from what had every appearance of being a failed bond offering. And while the Prime Minister has assured us that central government can survive without the U.S. $225 million infusion, indications from Belmopan are that things are far tighter than the P.M. will let on to. In fact in April, just about the last time Finance Minister Fonseca was around, we put that question of tight money to him and the always prickly minister, publicly bristled and upbraided News Director Jules Vasquez, telling, him that it's not government that has no money, it's the computers that won't let anyone touch it!
Jules Vasquez,
[April 30th 2004]...is that not a local pressing reality that the government is scrambling monthly to meet its debt service commitment?"
Hon. Ralph Fonseca,
"You are sacrificing your journalism again for reality because you know Jules that we are on a smart system now. It's not Mr. Mcsweaney, it is the computer that is not allowing you to go outside the discipline of the budget and that is something that this government has done and we have no apologies for that. Of course public officers are not used to that kind of discipline and of course some of them, especially some of your friends, will be upset because they are used to getting their own way. They cannot get their own way anymore. If the budget says you are supposed to spend so much that is what you are going to spend. If March comes around and you have a lot of unspent money in CAP II and you are trying to get away with putting in air conditioners and everything else in your office - you are going to get stopped. And you are going to get stopped by me and my team and our computers."
Click here for the full fireworks from the original April 30th House Debate on the U.S. $450 million Bond.