7 News Belize

Sugar Update
posted (December 2, 2010)
One week after it was approved by the House Of Representatives, The 10 million dollar loan from the government of Belize to BSI has still not been disbursed. Yesterday the PUP northern caucus sent out a release calling on the Prime Minister to release the monies, quote, "with immediate effect."

But government sent out a release today, saying it's just not that simple.

The $10 million is ready for disbursement but the Government is now waiting on the said bank waivers before releasing the funds to BSI.

As we've reported one of the conditions of the Agreement is that BSI first obtain waivers from its creditors so that it can assume the additional debt obligation.

BSI cannot draw down on the loan before the waivers are received because that will trigger a loan default of BSI which could lead to immediate foreclosure and collapse of the industry.

That matter is pending between banks and red tape, but government remains optimistic that ti will be worked out shortly.

In the interim, Government has made available a one million dollar grant to the Belize Sugar Industry Control Board to assist the cane farmers in meeting their immediate financial obligations - which ought to provide some help to the farmers as they prepare for the coming season - which was scheduled to start on December 13th….

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7 News Belize