The Governor of the Central Bank, Joy Grant and Belize's Economic Ambassador, Mark Espat have been in Washington DC from last week. They are meeting with the Federal Trade Commission on the thorny issue of Sanctuary Belize.
The FTC shut down Sanctuary Belize in November of last year, calling it "the largest overseas real estate investment scam (it) has ever targeted."
The FTC also brought the hammer down on Sanctuary Belize's bank, which is Atlantic International Bank - an offshore bank in Belize. That was a deathblow - and it forced the bank to close down.
But, while it is an offshore bank, Atlantic International's collapse has caused some tremors in the domestic banking sector. Government is trying to manage that - while also giving some satisfaction to the FTC which wants Atlantic's money to compensate the victims of the scam.
It's like trying get two slices of cake, when only crumbs are left. Today, the Prime Minister discussed the meetings in Washington which now involve the Central Bank appointed liquidator, Julian Murillo:
Rt. Hon. Dean Barrow- Prime Minister
"The next step is for the FTC to meet now with the liquidator. That meeting did not include the liquidator. We reiterated the position that, of course, neither the government nor the Central Bank can agree a settlement; it is the liquidator appointed now by law and seized with certain powers who is the only one who can agree a settlement. But, of course because we have an interest in seeing a settlement, we would do whatever we can to encourage the liquidator. If the FTC is at all interested - and they say they are - in a reasonable settlement - a settlement that can give - if not their pound of flesh - at least, maybe, an ounce or two. But that would also contemplate, take well on board the fact that there are depositors. As I pointed to Mr Cohen - the majority of whom are US citizens as well and they need to be made as whole as possible. And we don't want to end up trying to fit a square peg into round hole. The assets are limited and the kind of money I hear the FTC talking about in terms of losses they say these people have suffered, are the kinds of monies that are not available in terms of the entirety of the assets of AIBL. And, to the extent that there are assets, how do you, in fact, try to be even handed so that the people that the FTC is advocating for, ah, can be given some compensation, but that you don't completely denude the depositors who as I said - to the tune of 80-odd percent - are also Americans. We agreed, Mr. Cohen and I that, there's the rub and how that is to be worked out of course will have to be a matter for him and the liquidator."
"Really it is just a matter of trying to get rid of the situation because to the extent there are still some, some…there is still some residue of the AIBL portfolio, ah, projects, loans that other banks may be able, at the end of the day, to take up, we need to be sure that the FTC will immunize those banks in our jurisdiction, otherwise nobody will touch anything to do with AIBL. So it's complex and I don't know that we will be able to sort it out particularly quickly."
We'll keep you posted on this case.
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