Today the House of Representatives met in Belmopan and the two biggest items on the agenda were a $50 million loan from the IDB and the income tax on petroleum companies. We start with the IDB loan where the government will get $50 million on concessionary terms. It's a good deal for Belize, but under the worst circumstances. The loan is just "stay afloat" money - making cheap loans to pay off expensive ones. It's also what's called "policy based" - which means that the money will come through as long as government continues its belt tightening policies.
Leader of the Opposition Dean Barrow supported the loan, but complained bitterly about the policies that government has committed to. Here's the exchange between Barrow and Prime Minister Musa.
Rt. Hon. Said Musa, Prime Minister
"With these contributions from our official sectors and the multi-lateral partners now clear, we are confident that we are moving apace towards an imminent debt restructuring offer in which Belize's external creditors will find wisdom in participating. I urge the House to support this motion, this concessionary credit finances the budget that the House had approved earlier this year. It supports our balance of payments and it bills our reserves. It forms part of the comprehensive home grown program for long term stability of Belize's public sector finances."
Hon. Dean Barrow, Leader of the Opposition
"That liquidation of the DFC is imposed on this government by the IDB as part of the conditionalities of the policy based note. What is this telling you Madam Speaker? What is this telling the House? He has no choice. These people will disburse the money in two tranches. The second disbursement depends on whether or not he complies with the program of adjustment that the IDB and the other multi-laterals have set out for him, have imposed on him, and which he had to accept because he has so messed up this country that he has absolutely no choice.
I wish the Prime Minister would come clean, I wish he would tell us where we are going with the debt. I am not even going to task him with explaining and justifying how it is we could be in this absolutely shameful and impossible position because that is a story that the people of this country know only too well."
Rt. Hon. Said Musa,
"He is trying to say Madam Speaker that what we are doing is acting under duress, if you like, on instructions from Washington from IDB or IMF what have you. Well I think it really burns them that we have been carrying out a restructuring, we have been carrying out an adjustment, we have been carrying out a reform of our fiscal position, of our finances, in this country on our own initiative that we call the homegrown initiative. And yet everything that they do in their propaganda, in the way they project Belize abroad, is to bring down the good image of Belize. So Madam Speaker when all is said and done, the truth and the matter is, as I understand what they are saying on the other side, they are supporting the motion so I move that we move ahead."
The loan was approved by the House today, and is expected to be approved by the IDB on November 29th. After that $20 million will become available at the end of December and the other $30 million in mid-
2007.
