One month ago, on June 12th, the House of Representatives approved a highly concessionary US$25 million loan from Venezuela. The terms were so favorable, and the need so desperate that even the Leader of the Opposition motions his support.
Well today, government officials from Venezuela arrived in Belize to do the paperwork for the loan but it comes with one heck of a sweetener. 7NEWS has learnt that instead of US$25 million, the Venezuelans are loaning Belize US$50 million.
Sometime during the past month, the same month in which 15 CARICOM countries agreed to vote against Guatemala's candidacy for the rotating seat on the UN Security Council, Venezuela agreed to double the loan. Is it payback for the CARICOM backing, well...that might be cynical and a little shallow to suggest in the Petro-Caribe era, but the timing does beg the suggestion.
But don't look forward to this new money funding any new programs; this is strictly bailout money. And while the additional $25 million comes as a bonus, the government absolutely needs every cent to meet its external commitments. At the start of the fiscal year, government faced a $200 million financing shortfall to cover its external debts.
For even more additional balance of payments support, as this bailout money is called, Belize must turn to the IDB and the CDB where it is seeking another combined $50 million. All that combined with Venezuela's and Taiwan's money will only just about pull Belize out of the $200 million financing deficit for this year.
