IDB approves $25 million loan to Belize to assist economic reforms
Washington --- 12 Dec. 2006 --- The Inter-American Development Bank today announced the approval of a $25 million fast-disbursing loan to support Belize’s agenda of reforms to restore macroeconomic and financial stability, improve its business climate and bolster investor confidence.
Belize has made progress in addressing serious macroeconomic imbalances by following a homegrown strategy. Its authorities have expressed a firm commitment to maintaining stability through a comprehensive medium-term economic program, where reaching a cooperative agreement with private creditors on restructuring its external debt will be paramount.
The IDB loan will assist Belize’s government, which has taken steps to strengthen its fiscal position by raising revenues and cutting expenditures. Through those measures it has reduced the fiscal deficit from 8.7 percent of GDP in 2004 to 3.3 percent in 2005.
The loan will be disbursed in two tranches, the first one of $10 million and the second one of $15 million, as Belize goes forward with its reforms. The Ministry of Finance will be responsible for the program’s execution.
The loan was granted for 20 years, with a five-year grace period and a LIBOR-based interest rate.