PM: Belize's Credit Maxed Out
Also, in the PM's late evening statement came the pronouncement about the
quite well-known fact that that the country's credit is maxed out and that
as a nation we aren't making enough to pay our Bills.
But while the PM announced these facts like they're new information he
has to have know that these massive debts have been building for months
since the onset of COVID. Briceno said it's unsustainable.
Hon. John Briceno - Prime Minister of Belize
"While in opposition, we had railed against the mismanagement and
corruption by the past UDP government that you rightly and soundly rejected
at the polls. The magnitude of mismanagement was verified at our briefing
by the technocrats from the Ministry of Finance and the Central Bank of
Belize. These technocrats jointly expressed that the Government has been
functioning with unsustainable fiscal and debt positions. The presentation
to Cabinet by the technocrats revealed that Central Government's revenues
have fallen by over $166.8 million or by 24.9 percent. This is far worse
than we had anticipated. Government has been borrowing to meet the monthly
wage and pensions bill and other current expenses to the tune of around $30
million per month. As a result, Central Government's debt has jumped from
97.7 percent of GDP to 132.9 percent of GDP. In simple terms, the UDP
Government maxed out the credit card. We do not earn enough to pay our
bills. We are more than double the internationally acceptable debt to GDP
threshold and the second highest in the Caribbean. This is unsustainable."