And while the possibility of an Ashcroft re-emergence is stunning, it's not the only issue that GOB has with the International Bank of Miami. As we reported last night (See IBOM under pressure), federal regulators have moved in on the bank to strictly regulate its activities. How will that affect the US$40 million refinancing package with Belize? The Prime Minister told us, "hardly."
Hon. Said Musa,
“They have separated out the TBOM, the IBOM, from this Capital Markets Company that was formed and its with that company that we made the arrangement for the financing, the refinancing of the $40 million and I believe that will still go ahead.”
Jules Vasquez,
With the Capital Markets?
Hon. Said Musa,
“Yes who in turn will then pay IBOM?”
“In other words nominally the debt is with International Bank of Miami but this other group is the group that really works with the bondholders and they have access to be able to raise the money.”
Jules Vasquez,
But are they still affiliated with IBOM?
Hon. Said Musa,
“In the sense that when the money is raised through the bondholders they will just pay into…IBOM as I understand it has a cease and desist order from the regulators so they cannot go the bondholders but this other group certainly can. Okay?”
According to the Miami Daily Business Review, the restrictions imposed on the International Bank of Miami by U.S. federal regulators state that the bank must, "identify clients who may be "politically exposed persons," which is loosely defined to include heads of state, royal families and senior government officials, in order to comply with the USA Patriot Act. Also, it must restrict loans outside the United States to those that meet a three-point agreement.