So is Belize Bank buying over a portion of DFC's portfolio? As we reported last night the Governor of the Central Bank Sydney Campbell reported that $50 million had gone "on the books" as a loan from Belize Bank to the DFC. And Campbell explains that while it is recorded as a loan, it's actually part of the negotiation to buy over the DFC portfolio.
Well a number of senior sources in the banking circles have confirmed that it is a highly irregular transaction to first: record something in the aggregates which is not actually cash-at-hand, and second: to record a buyout under "loans and advances". So why the irregularity? Well top government sources indicate that government had to put the $50 million on the books to convince the IMF that it was moving off some of the burdensome DFC debt.
The IMF was here two weeks ago, and expected that there would have been some progress with the portfolio and government obliged by recording what is essentially an intended transaction on Central Bank's books as an actual transaction.