The Senate also passed the Central Bank of Belize Amendment Bill of 2022. That's one of the bills that was passed at Tuesday's House meeting. It seeks, among other things, to increase the authorized Capital of the government's bank to 50 million dollars, with a paid-up capital of 40 million.
But, according to Senator Michael Peyrefitte, if you listened to Prime Minister John Briceno's budget speech for the new fiscal year, there will be no liquidity crisis that this legislation also braces for. Here's what he had to say about it:
Hon. Michael Peyrefitte - UDP Senator
"Across the land a new day is dawning, the economy is bouncing back. Belizeans are returning to work in large numbers, larger numbers than ever before. The Belize dollar is strong again. Default and devaluation have been averted and the confidence of the state and those she serves is being restored. Why the need to say two things. If things are bright and people are working, then people can pay their loans, so why the need to worry about a liquidity crisis, which is it? It goes on to say this: Belize's 2021 national economic rebound may be as high as 12.5%. According to the IMF, twice the rate of the Latin American Caribbean regions, in fact safe for Guyana and its crude oil bonanza, Belize is the fastest growing economy amongst all countries in North, Central, South America and the Caribbean. We are baddest of the baddest in this whole hemisphere, so then why are you worried about a liquidity crisis?"
Hon. Eamon Courtenay - Leader of Government Business
"There are banks and there are banks. There are loans and there are loans. Not all banks are performing the same way, not all loans are performing the same way. This is design first of all to raise the capital base of the central bank in the event it has to intervene. As I said on the last occasion, the hope is that it will not have to intervene. It is abundantly clear to anyone except Senator Peyrefitte that there are businesses individual businesses and persons who continue to struggle."
This bill will also be handed over to the Governor-General for her assent.
