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Over the past week much has been made about a US$22.5 million outstanding loan the Belize Bank had made to BTL. When BTL was expropriated on August 24th, that mortgage debenture securing the loan was also taken over by government. But some prominent public personalities have argued that in taking over the mortgage government has taken on that 22.5 million us dollar loan – which would be unlawful since public borrowings of that size must be approved by the National Assembly.

But according to the PM, they've got it all wrong, government is doesn't owe the Belize Bank; instead, by taking over the mortgage government is now the creditor, meaning that instead of owing the Belize Bank, BTL now owes government and government will refund the Belize Bank in the compensation process. Confused? You might be. But today the PM tried to break it down today.

Hon. Dean Barrow, Prime Minister
"Government in its acquisition, in the order made by the Minister acquired that mortgage debenture which in effect means that government is subrogated to the rights of the bank. Government steps in the shoes of the bank, government in fact then inhabits the space of the creditor. The mortgage debenture is thus in government's favour and the loan to Telemedia that it secures is a loan that is now owed by Telemedia to government. Government has not assumed BTL's debt.

That would mean that government has stepped into the shoes of BTL, it is the complete opposite. Government has stepped into the shoes of the bank. So rather than government now owing the loan in the place of Telemedia, government is the person to whom the loan is owed in the place of Belize Bank Turks and Cacios."