Could Belize's largest fisheries cooperative end up folding just before the start of lobster season? Reliable reports reaching 7News this week indicate that the Belize Bank is about to foreclose on the Northern Fishermen Cooperative because of an 11 million dollar non performing loan.
The Bank has reportedly cut off the Co-op's overdraft facility - leaving the Co-op acutely cash strapped and struggling to make payments to members for product. The real cash crunch will come at the end of next week when the Co-op has to meet payday for staff.
So, what's being done about it? Well, the Co-op got the Holy Redeemer Credit Union to agree to take over the debt at a more manageable term and interest rate. But, multiple reports tell us that the Central Bank blocked the debt transfer - on the basis that - due to the Co-op's poor credit history - it was too risky for HRCU.
That leaves the Co-op and its over 700 members facing grim prospects - because, reports say, the Belize Bank is ready to move in as early as next week.
The risks are significant - as long time employees stand to lose their benefits - and members - who are the fishermen - could be left in the cold. We asked the registrar of cooperatives Gareth Murillo about it yesterday and he told us he was confident something would be worked out by next week.
The Co-op has had financial difficulties for many years - and we first reported on irregularities in 2004 when a report from the then registrar pointed to abuse, and reckless fiscal indiscipline in the management of Northern Fishermen Cooperatives and disbursements of loans to members.
