Stake Bank Goes into Receivership Amid Lawsuit Against G.O.B.

Ground was officially broken for the commencement of the Stake Bank Tourism Development Project back in 2018, and work got underway for the mega cruise facility shortly thereafter.  But tonight, after investing north of one hundred million dollars, Port Coral, a Michael Feinstein initiative, has gone into receivership.  Earlier today, News Five confirmed that a receiver had been appointed for the project during a meeting on Thursday.  That individual is Marlowe Neal.  The receivership is expected to last for a period of between six to nine months with a view to complete the construction of piers that would allow for cruise ships to berth at Stake Bank.  But there is also multi-million dollar claim that had been brought against the Briceno administration prior to Stake Bank going into receivership.  Earlier today, we caught up with Prime Minister John Briceño, who spoke briefly on the matter, as well as the status of a piece of legislation that was to have been introduced in place of the definitive agreement.

 

Prime Minister John Briceño

“When it comes to the issue of the receivership, that‘s a matter for the bank and I‘m sure that they may have their reasons why it is that they believe that they have to put the Stake Bank project in receivership.  But, as we know, the main players behind the Stake Bank Project decided to sue the government and from what I am told there is really no case.  So I can‘t understand why it is that they would want to sue the government.”

 

Reporter

“What do you believe this means for the cruise sector?  Will Belize ever see a berthing port?”

 

Prime Minister John Briceño

“I do believe that we will.  As we said, there are three areas: there is Stake Bank, there is Portico and also now there is the Port of Belize.  And so, all of that is still remaining in play and we will see which is the one to be developed into a cruise port that can meet not only the needs for today, but also for ten, twenty years from today.”

 

Reporter

“This is the largest receivership, I believe, in Belize’s banking history.  Do you think it will affect the banking sector, though?”

 

Prime Minister John Briceño

“No, it will not.  The Central Bank has been very clear and also, so has Atlantic Bank.  They have been very clear from day one that they are going to ensure that they protect every single cent of the depositors.  So, no, I do not expect it to be a problem.”

 

Isani Cayetano

“PM, where are we with the legislation that’s forthcoming with respect of cruise tourism development in this country?”

 

Prime Minister John Briceño

“Well, nowhere.  Until we know where we’re going, it does not make sense to pass this piece of legislation.  We’re pretty much ready, but depending on which direction we will go then we may need to make some adjustments to that piece of legislation.  So that is why we are holding on to it and we will deal with it when the time is appropriate.”

 

Reporter

“Notwithstanding that you say the claimants don’t have a case, has the government engaged with them?  Have you met with them?”

 

Prime Minister John Briceño

“No, I have not met with them, but Mr. Feinstein did call me on Wednesday wanting to have a meeting, so I hope to meet with them next week.”