And while Prosser has trouble getting his millions, the government of Belize might be in the same situation with its other favorite lender, the International Bank of Miami.
The Miami Daily Business Review today reported that the IBOM has been "disciplined by federal banking regulators...and has entered into a settlement that severely restricts the bank's operations.” Most worrying is that the regulators ordered the closure of the bank's capital markets group, which dealt with emerging market debt, mainly from Latin America, including Belize.
In fact, one of the pillars of Belize's debt consolidation programme rests on a US$40 million refinancing package with the capital markets group. That was approved in the National assembly two weeks ago, but the Miami Daily News quotes IBOM Chairman Alberto Valdes as saying that the Capital Markets group was closed down in june and the four persons running the group are no longer with the bank. Still, the term sheet, obtained by 7NEWS which was sent in late August or early September says that the lender is Capital Markets Financial Services.
What does all this mean for the US$40 government simply must have to refinance massive short-term debt with the IBOM? Well, those in the banking sector we spoke to outside of government say that the money is clearly in jeopardy, but all is not lost. In this regard, the Miami Daily News reports that federal regulators have put the famously carefree IBOM on a tight reign and ordered that it restrict loans outside the united states to those that meet the requirements of a three point agreement.