Tonight, Belize's biggest Co-op, the Northern Fishermen is back in the news - and that's because it is days away from a possible foreclosure by the Belize Bank.
As we had been reporting, the Co-op could not service its substantial debt with the bank and needed a bailout to stay afloat. In May, the Holy Redeemer Credit Union and the Belize Bank worked out a package which would see the Credit Union buy over the debt with a discount.
Early reports said the Governor of the Central Bank was reluctant to approve it - but then 4 weeks ago, word came that he had ok'd HRCU infusing some cash into the credit union's operations - just to keep it afloat.
It was seen as an interim measure which would hold until the HRCU bought over the Belize Bank debt.
Well, that still has not been approved, and the Belize Bank - which gave the Co-op a 30 day extension to work out its difficulties, has reportedly lost patience. The 30 days expires on Thursday and that puts the Co-op in a very precarious position tonight.
The Credit Union is now also exposed since it had extended an overdraft for the co-op to keep itself afloat.
We note that this is all taking place just as lobster season opens, which is when the Co-op expects to be earning from exports of lobster.
But, if an arrangement cannot be worked out - those inflows may be going to the bank. With two days to go before the deadline tho, it is still too early to tell.
