Belize’s total external public debt amounts to over .3 billion. This represents approximately 70 percent of our Gross Domestic Product. Administrations led by both major political parties have contributed to that massive number but what the concrete evidence has shown is that all debts are not created equally.
The People’s United Party’s Superbond is the result of a consolidation process that resulted in the amalgamation of numerous commercial loans amounting to US$546,786,000 which were borrowed at ridiculous interest rates in the span of a few years time. This accounts for 45 percent of the total external public debt.
Every economist will tell you there is nothing wrong with a government borrowing or being in debt. Almost every single country in the world has some national debt. However, something is extremely wrong when an Administration is less responsible in spending than a drunken sailor. One of the loans amalgamated in the Superbond is the 2002 Bear Sterns $250 million bond, of which the purpose for $33.4 million was listed as “multisector development”, $21.4 million was listed as General Budget Support, $10.4 million for Intelco computers, $10 million for “GOB Investments”, another $40 million for General Budget Support and $10.6 million for “fees and expenses”. The PUP spent all that money and we have nothing to show for it – not in stone or on paper.
With this in their history, the People’s United Party has the nerve to criticize this Administration’s use of the Petrocaribe funds. Total debt owed to the Bolivarian Republic of Venezuela, including the Petrocaribe funds, amounts to 18 percent of GDP. The Petrocaribe funds have an interest rate of 1 to 2 percent with special payment arrangements attached in which it is possible to pay back in commodities. Using Petro-Caribe funds, the Government has already invested over $67 million in roads and street infrastructure countrywide. Over $13 million has been spent on the Lake Independence Boulevard and Chetumal Street Bridge, $10 million to Belize City for concreting of streets, an additional $2 million for emergency street work in Belize City after an extended period of rain in 2014, $8 million on streets in district towns as of January 2015, $10 million to rehabilitate the sugar roads before the start of the 2015 season. $2.2 million to repair road hotspots countrywide, $15 million in road infrastructure across the country, $3.1 million to construct roundabouts on the George Price Highway and Phillip Goldson Highway where they connect to the Lake Independence Boulevard and Chetumal Street, more than $60 million for signature multipurpose facilities in each district town and city. The Belize Infrastructure Limited (BIL) is responsible for eight such projects. In Belmopan City the Isidoro Beaton Football Stadium was renovated to world class standards at an estimated cost of $3.5 million. Falcon Field in San Ignacio Town for a roofed, outdoor court facility with restrooms and a refurbished stage, a playground, sidewalks and a bus stop at an estimated cost of $850,000. Also in San Ignacio, the Victor Galvez Recreation Field upgraded to international standards at a cost of more than $1.3 million. Two football fields will be built in Santa Elena at the Victor August Football Stadium for recreational and organized competition at an estimated cost of $2.25 million. The Benque Viejo Del Carmen Football Complex and Facilities upgraded to FIFA standard at an approximate cost of $4.5 million. Belize’s first synthetic turf field in San Pedro Town for the San Pedro Football Field in the neighbourhood of $3.25 million. Multipurpose facilities in Dangriga and Punta Gorda for up to $5 million each. The Belize City Center is well on its way at a total cost of $30 million. And there are other projects that can be listed.
Prime Minister Barrow puts it best when in his budget speech on Monday, March 13, said, “The PUP’s pace of public borrowing, on average, was a “double-up” and “triple-up” approach: borrow two dollars for every dollar of economic growth, borrow three dollars for every new dollar of revenue: clearly a case of irrationality, cognitive dissonance, and corrupt use of unmonitored debt funds to fill ministerial and crony pockets.”
