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Feb 9, 2016

Santander Applied for S.S.B. Loan to Bridge Shortfall in Consortium Loan

The airwaves have been consumed with the news that mega-million dollar sugar-cane production and milling facility, Green Tropics, has been given a twelve million dollar loan from the Social Security Board. Green Tropics’ Parent company, the Santander Group, is Guatemalan owned – that’s one immediate concern being voiced, since S.S.B. money is from Belizean contributors. Then there’s the obvious question – if Santander is a Guatemalan company making an investment of more than one hundred and forty million U.S. dollars in Belize, why does it need a loan of twelve million from the S.S.B.? Today, News Five spoke to S.S.B. Chairman Doug Singh provided some answers, and also information which was certainly not public before concerning the actual investment breakdown. First…some background on the loan application which was made back in October 2015.

 

Douglas Singh

Douglas Singh, Chairman, Social Security Board

“Their total investment in their business plan was one hundred and forty-two million U.S. dollars at the onset, of which ninety-five or ninety-six million would be funded by debt and the rest would be by equity. I believe their equity portion was in excess of forty-eight million US dollars. The ninety-five million dollars was sought from the financial markets. Some of it came from a bank in Washington, others from a bank in Panama, others from a bank in Guatemala – I think there were two banks in Guatemala and the remainder from financial institutions in Belize. The consortium loan had been fully subscribed for, meaning that they had already gotten commitments from all the banks. In fact I believe that it has already been funded except for one institution. There was a financial institution in Guatemala called Occidente which had some restrictions. I believe I was told that they were acquired by another financial institution that had limitations to its regional lending, so while the previous institution had approved it, after the acquisition Belize was not a part of the region they could lend to and so they had to withdraw that offer. That was a total of seven million dollars. Since then Santander had funded an additional million so they sought the difference to complete their long term financing package of ninety-five million dollars. They approached the Social Security.”

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1 Response for “Santander Applied for S.S.B. Loan to Bridge Shortfall in Consortium Loan”

  1. youserious says:

    This is money laundering, many people in Guatemala know and have commented that a well known Drug Lord has many assets in this company. Now we would like to know when are we going to start receiving our money back? for how long is this loan for? Equipment/vehicles loose value year by year so how can we accept this as collateral? Many equipment/vehicles were bought in Guatemala and have already been sent to Belize, so how can we be sure these vehicles are worth it?

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