Belize - Belize News - Channel5Belize.com - Great Belize Productions - Belize Breaking News
Home » Economy, Featured, Miscellaneous » Central Bank investment in Telemedia covered by buy back clause
Jul 20, 2011

Central Bank investment in Telemedia covered by buy back clause

It lay quietly under the news radar until it was casually revealed in a newspaper interview about two weeks ago by B.T.L. Chairman, Net Vasquez. We’re talking about the fact that the Central Bank of Belize has purchased twenty million dollars worth of shares in B.T.L. because no one else was buying. But did Central Bank have the power under the Central Bank Act to purchase those shares? This is a question that is gaining some currency within the private sector and the banking community. The concern of the business community is that the Central Bank’s main role is as a regulator. Its job is to foster monetary stability, stability of the exchange rate and to promote credit and exchange conditions conductive to the growth of Belize. Observers also point out that while the Central Bank may buy or sell treasury bills it has no authority to purchase shares in B.T.L. and besides its re-nationalization is mired in litigation. News Five is not aware that the Central Bank has ever purchased any shares in any company or enterprise in Belize. But the Prime Minister argued this morning that the ownership of Telemedia will soon be enshrined in the constitution. Still with further legal battles over ownership looming in the horizon and compensation to the former owners still not paid, the PM said that the Central Bank investment will be covered by a buy back clause.

Jules Vasquez, 7 News

“Is this encroachment or this protection of utilities in public hands by constitutional amendment is it a way again to try and safeguard the renationalization of B.T.L. or to try to protect it from another legal attack? Mister Ashcroft has said that he feels this one is even more vulnerable.”

Dean Barrow

Dean Barrow

“Well I suppose you will want to look very carefully at the way in which the amendment is framed. I would think that inherent in enshrining ownership in the constitution is in fact protection against a challenge to that ownership. So I would think that you asked a very good question and I would think that the answer to that question is yes.”

Alfonso Noble

“Is there any truth that Central Bank of Belize is looking to buy shares in B.T.L.?”

Dean Barrow

“I think they may already have, but I am not entirely certain, but I think twenty million dollars worth.”

Jules Vasquez

“I think that there is some dispute as to whether the Central Bank can invest in securities and such instruments.”

Dean Barrow

“They took legal opinion from two sources and there is no doubt at all based on the legal opinion that they can.”

Jules Vasquez

“Is there a buy back clause in it?”

Dean Barrow

“Yes government has undertaken to buy back at the appropriate time if that is the wish of the Central Bank.”

Jules Vasquez

“Why was that necessitated? To minimize the exposure to risk?”

Dean Barrow

“Well I suppose you will have to talk to the Central Bank people, but we do not see it as a problem, we believe that where in this thing especially now with entrenchment in the constitution for the long haul. So we have no difficulty at all with such a clause.”

Alfonso Noble

“With the constitutional changes as it relates to the utilities, does this mean that it minimizes the risk of B.E.L. coming at government with a law suit?”

Dean Barrow

“I would think so yes.”

Be Sociable, Share!


Viewers please note: This Internet newscast is a verbatim transcript of our evening television newscast. Where speakers use Kriol, we attempt to faithfully reproduce the quotes using a standard spelling system.

Advertise Here

4 Responses for “Central Bank investment in Telemedia covered by buy back clause”

  1. Ricky Malthus says:

    More surprises again. Barrow, Central Bank, SSB, Net Vasquez, once again have demonstrated that they are inept to handle the nation’s finance. Imagine Dean, you can’t even do a simple repurchase and reverse repurchase agreement. Stick with the Ashcroft Co. where you are the one eye giant amongst the blind. Belize is really the laughing stock of the world.

  2. Roy Yates says:

    I thought that Barrow is the Minister of Finance. If he is, then the Central Bank is wide open to him. Why is he saying that they will have to talk to the folks at the Central Bank for answers? They took advise from two legat source; (RIGHT) and he is one of the legal source. last I heard, he was a lawyer. This man continue to play with people intelligence.

  3. Gary says:

    Isn,t Dean the minister of finance and the prime minister of this country????so why when he was asked about the shares central bank bought, his response is he’s not sure….how could u not be she if your ministry and government is spending 20million dollars????what the f@#*

  4. Gary says:

    Isn,t Dean the minister of finance and the prime minister of this country????so why when he was asked about the shares central bank bought, his response is he’s not sure….how could u not be sure if your ministry and government is spending 20million dollars????what the f@#*

Leave a Reply

CAPTCHA Image
*