September 21st 2007 is a Friday, leading in to what is sure to be a weekend of celebration but probably not for the government because on September 23rd the principal debt to the Belize Bank - $33.5 million is due in full, no bull. That's the startling finding that we made after reviewing loan note between the Belize Bank and the Government of Belize.
That document and the settlement deed were disclosed to the Association of Concerned Belizeans on Friday as part of the court case where the ACB is questioning the Prime Minister's right to take on the Universal debt without having first taken it to the House. But one look at the loan note, and you might be able to figure why the PM would have preferred if it were kept secret.
- First, as we said, the entire principal plus any interests owing are due on the 23rd September, 2007. And if government can't pay at that time, another 4% interest will be tagged on to the 17% default per annum that government is already being charged - bringing it to 21%.
- Second, government has agreed to pay all stamp duties or any other duties, charges or levies that may arise.
- Third the government renounces any right to rely on the principle of sovereign immunity, to try and get out of the obligations under the loan note.
So, the appearance of the September 23rd date puts more pressure on the government to come up with an investor to buy Universal - or - as has been done in the past - just roll over the debt and having taxpayers pay the penalty costs of 4% more in annual interest.
