The House of Representatives convened this morning in Belmopan and the main business of the day was a motion to float a bond of US $225 million.
The largest bond offering in Belize's history was pushed through all three readings in today's meeting and it was vigorously debated. Here are excerpts of a battle royale that went on for two hours starting with Finance Minister Fonseca who first explained the reason for the bond.
Hon. Ralph Fonseca, Minister of Finance
"A successful 15 year bond issue will allow our debt service to relieve cash flow management by some US $62 million over 8 years alone for the entire public sector."
Hon. Dean Barrow, UDP Leader
"We are given no details. We must take his word for it that in fact the monies raised from the bonds will be used to restructure. No we are not sheep in this house or certainly not on this side of the house. This is the House of Representatives. This is where the nation's business is conducted with all seriousness, sometimes; and solemnity, sometimes. This is the place where we have a right to know and this is a place where we demand to know how much of this money is it that you say Mr. Minister will be used for refinancing and what will the rest be used for. Give us the proportions. Madam Speaker as far I am concerned until I can hear otherwise and until I can be shown otherwise, I will conclude that all of this money is for budgetary prop-up. All of this money is to continue the cycle of wasteful spending and borrowing.
Hon. Jose Coye, Minister of Works
"Madam Speaker this resolution is in fact focusing on the re-financing of debt and yes to the effect that it makes reference to un-funded expenditure - that clearly is secondary and circumstances will determine that. But the point I want to make here Madam Speaker is that whereas I can understand the concerns of the leader of the opposition, and I think there are legitimate concerns, what I cannot agree is that because of the wording of the resolution it is suggestive of a sinister move. That I cannot agree with."
"The time is not now for us to debate what the debts were created but we are willing to debate that in another forum and maybe at another time. The resolution is focusing on a very prudent, longstanding financial management tool and there is nothing to it. It makes good sense."
Hon. John Saldivar, Cayo South Area Representative
"The issue of having to restructure our debt brings us right back to what was done when these original loans were negotiated. And what we see happening here is a government that has taken on very onerous conditions under these loans and now only a few years later are being forced to restructure these debts at a high cost to taxpayers."
Hon. Said Musa, Prime Minister
"We are doing it primarily and essentially to restructure the debt - to refinance and to pay off short-term debt. Pay off the short-term debts and the debts that have high interest rates. It's very simple."
Hon. Ralph Fonseca,
"To answer the member from Cayo South about taking on debts at onerous rates - yes I want you to be in government. I want you to be in the emergency committee at a time when you have a hurricane and when you have people calling for millions of dollars and I want to see if you can get on the telephone and raise a $100 million in two to three weeks. This government can do that. Your government could never, never do that. But when you are negotiating on the phone and trying to move as fast as possible obviously you don't get the best deal. You almost have to take what you can get."
Hon. Michael Finnegan, Mesopotamia Area Representative,
"I don't think that the ordinary man or woman out there has a deep understanding of all this economic jargon which was spoken a while ago in this honorable house. Madam Speaker, what we are doing in terms of these bonds are far as I am concerned is borrowing again from Peter to pay Paul. And what we are doing in my view is putting additional burden on the poor people of this country. Madam Speaker, what benefits will the poor derive from education if I support this bond this morning? Will we see benefits to our classrooms? Will we see more teachers in our classrooms? Will we see more classrooms? Will we see more children sitting in classrooms with their belly full rather than empty? Madam Speaker what benefits will the poor derive from this bond in terms of our health services? Will the KHMH be more properly staffed? Will the KHMH be in bountiful supply of medication in order to provide the kind of medication to the poor of this country? Will it take the prescription pain off the back of the ordinary man and woman out there in the streets Madam Speaker? Madam Speaker if I support this $450 million bond will it reduce the unemployment catastrophe that is out there in the streets today? Will our young people be able to find jobs out there?"
Hon. Ralph Fonseca,
"That means that we will have available in cash, regardless of what madness takes place all over the world, an additional $16 million a year to help those people in Belize that need it the most. That is what this is all about. Instead of taxing the people $62 million, we are using the international community, the relationship we have - the Belize story - the hard work of our technocrats who will have to go all over the world in the next couple of weeks along with the representative from Albert and myself and give the Belize story. All of this is being done precisely to make our economy more shockproof so that we can help those that need it the most."
Hon. Dean Barrow,
"We are not living in a good country. We are living in a country of betrayal, deception, and fraud."
The bond offering is expected to be approved by the senate after which it will be offered for sale by Deustche Bank Securities and Morgan Stanley & Company.