There will not be a vote on the $33 million Universal debt tomorrow. That's the decision that the Prime Minister announced to Cabinet and the parliamentary caucus today.
A government release has confirmed that a motion for a new loan will be tabled tomorrow. It will then be sent to committee and voted on next week Friday at another House meeting. The new loan, basically from the Belizean Bank to pay the Belize Bank, will render irrelevant the December 2004 guarantee, and the March 23rd settlement deed.
So what's the deal? Well from what we've been able to glean from PUP insiders, the decision is twofold. First the Prime Minister hopes to sap the energies of opposition forces which are geared up for a showdown tomorrow. And second, at least one Cabinet member who had opposed has indicated that if he is given a week to review the new proposal, he is likely to support it. Also, sending it to committee gives members of the public a formal way to present their views on it.
But their views on what? Well, it will be a new loan for a principal sum of $29 million with a rate of interest of 10% over 25 years. The principal $29 million will come due in a bullet payment in the year 2032. The interest will be paid annually, and so it works out to $2.9 million over 25 years, $72.5 million. And when that's been paid, add in the $29 million and the net present value of the deal is a cool $100 million.
So that's what will be tabled at the House tomorrow. The Leader of the Opposition has advised us that the Opposition will demand that the bill be passed in one day. If not, he says he will advise the Prime Minister that the UDP will bring it supporters back the following week.
And when it is voted on the following week, what will happen? Well multiple sources tell us that the Prime Minister informed the Cabinet that he demands complete support from his ministers. He reportedly made it clear that he will not accept abstentions or "no" votes.
Still, even with that it is not clear that his entire Cabinet will support it, leaving the Prime Minister with the choice to fire them, or not. But now they've been given a week to consider their options.
