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Dec 3, 2010

Economic Meltdown in the Free Zone

At news time, the Commercial Free zone in Corozal is facing serious difficulties at the beginning of one of its busiest times of year.  The Christmas season could see businesses collapse because of an economic roadblock between local and foreign financial institutions.  Acting Prime Minister Patrick Faber is apparently meeting with ministers, representatives of Free Zone and Chamber of Commerce to see if they can find a solution to the crisis. Essentially, there is a problem for businessmen to make deposits in U.S dollars. Reports are that the financial meltdown started about three weeks ago when businesses could not access US dollars through the Central Bank because the bank, we are told, is unable to deposit U.S. dollars that come from the two major banks in the free zone.  The difficulty of the deposits is also causing a major problem for businesses to conduct transactions in U.S. dollars. At this time it is estimated that at least seventy million U.S. dollars are sitting in the banks and economic activity is at a standstill since the money simply cannot flow to creditors.  One possible solution could be for businesses to seek new banks but even that solution is cumbersome.

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8 Responses for “Economic Meltdown in the Free Zone”

  1. rootsman says:

    I hope those US dollars are not as phony as the Chinese manufactured bootlegged items that they sell at the free zone which they try to pass off as genuine.

  2. Jerry says:

    it is actually 17 million US Dollars. I also hope that those who will comment will use their senses and not say Barrow dis Barrow dat bcas the reason why Central Bank cannot deposit is because HSBC has closed their account so no say Barrow dis Barrow dat just say HSBC dis HSBC dat. The only possible blame on Central Bank is why did they not try and open another account at another bank 2 weeks ago? The answer to that is simple the Central Bank cannot use peoples money and deposit it without the approval of those people (the free zone business men) If Central Bank opened and account with another bank and deposited the 17 million US and that bank failed then Central Bank would have to pay damages to the free zone business men and interest on the judgment sum. It all legal colloquialism.

  3. land of the stupid? says:

    Jerry da who and you man? You the defend the great one and no one no even the attack the fella (yet).

    !@$$ cloth unu UDP supporters are as dumb as they come fi true.

  4. BZNinCALI says:

    Jerry, thanks for the explanation. Is there something else missing that needs to be addressed?

  5. Proud Belizean says:

    I guess your alias speaks for its self, Land of the Stupid. I think Jerry made a very valuable and informative comment.

  6. Common Sense says:

    Is this to do with an increased awareness of the international banks of Belize’s involvement in transhipment of cocaine/noticeable increase in corruption? It seems bizarre that, all of a sudden, a bank such as HSBC would close an account owned by a central bank of a sovereign country.

    Would this affect private, non freezone, customers with transfers from and to the USA? Am pretty sure Belize Bank use an account held at the Bank of America’s new york branch for international wires etc.

    This is a puzzling story with little to no information that I can find.

  7. Earl Grey says:

    LET THE SMOKE SETTLE OUT AND WATCH THE MIRRORS………….. Then we’ll see what we have.

    Something DOES NOT SMELL RIGHT…………………..

  8. Quest says:

    As a matter of fact, last week I read on Reuters that US Banks were closing accounts belonging to several Embassies and High Commissions of foreign states and Foreign governments and that these foreign governments were asking Hillary Clinton to intervene as US Secy of State, but to no avail. They froze these accounts without any warning or reason.

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