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Aug 4, 2011

Standard and Poors downgrades Belize

There’s dire economic news tonight. The warning came shortly after the nationalization of Belize Electricity Limited and today Standard and Poor’s officially decreased Belize’s credit rating. The foreign currency credit score was downgraded from a B to B minus. According to S&P, by acquiring a seventy percent stake in the financially distressed utility company, government added to the country’s fiscal problems. In making the announcement, the S&P said that “Belize’s general government debt as a portion of gross domestic product is already a high eighty-five percent, with the interest burden around fifteen percent of its revenues.” The acquisition of B.E.L. from Fortis raised red flags among several international business and finance specialist, who have also warned about the added weight to the country’s debt burden. Government is yet to pay compensation to the owners of Telemedia which was first nationalized in 2009 and then re-nationalized last month. Both acquisitions have soared the national debt which was put back in March at over a billion US dollars and that doesn’t include the debt from the acquisitions of the two utility companies. In June, Moody Investors has also lowered Belize’s credit rating to a B.  The ratings heavily influence foreign investment and it also means that if Belize needs to borrow on the capital markets, it will have to pay higher rates.

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16 Responses for “Standard and Poors downgrades Belize”

  1. wisdom says:

    Yes there is dire economic news. Its global!!! The U.S. stock markets stumbled this week and that country may be heading for a double dip recession. The European and Asian markets are suffering a similar fate. The huge polarity of wealth is unsustainable and has to become unstable. Simply put, poor people dont have money to keep consuming so that rich corporations can continue to exploit them. This is not local to Belize. Oh and by the way the S&P averages also fell hard.

  2. Rod says:

    No surprise here every aspect of life is in the Toilet in belize here is barrows report card 1. Economy in the drain ,2. Murder rate highest in the history of the country 3. Crime completely out of control 4. Corruption worse in the history of belize5. Now Belize has the highest aids in the Americas 6. Tourism in the drain 7. Every aspect of life is in the toilet this is his grade. 20 or in other words barrows grade is an big fat. F. This is what we have since a black man is in charge.

  3. Earl Grey says:

    YEAH…………BUT WE ARE STILL DOING BETTER THAT GREECE and SPAIN and PORTUGAL………. up to now.

  4. javier solis says:

    We continue to care what these guys have to say? How come they could predict Leeman Brothers and Bear Sterns? Waste of time.

  5. Justice says:

    Followers of Barrow will come to his defence but be real, barrow is to be blamed for the mess Belize is in. There is worse to come if he is allowed to stay in power.How do you think we now look in the international market? It is sad and another party needs to intervene. Whilst the other party is PUP, they need to weed out Fonseca nd Musa completely to ensure that corruption is not continued. failing that we need fresh blood.

  6. Ricky Malthus says:

    Wisdom , you have described very wellthe status of the world economy to which Belize has not contributed a lick; while Rod has stated some hard factual truths that Barrow has inflicted Belize with a cauldron of venom, of poverty, of sickness that need not have occurred. Wisdom, find out the real reason why Barrow provided the Sovereign Guarantee to buy BSI; Why he is shredding the Belize Constitution to place every single man, woman, and child now and in future,in jeopardy to gain a livelihood,why is he pre-positioning aliens from Caribbean and Africa in decision making jobs in Belize from the Supreme Court, Solicitor General’s Office, University of Belize and the African teachers where everyone is iebriated with black power. Barrow has also seized our energy supply by acquiring BEL, BTL-Communications, and he has GOB purse where he can raise taxes irrationally to benefit himself and family.This is a partial list. But WISDOM, I want you to reply with sagacity and tell us your findings. NO BS.

  7. Concern Citizen says:

    STop Blaming Barrow for everything Belizeans are always looking for a scape goat.
    These are hard times PPl things are BAd all over the world get out of the bubble you are living in and look at the diffrent countries around you. I am living here in the U.S.A and its realy BAD here imagine little BElize.

  8. Disappointed says:

    To “rod” What exactly is your point in saying “This is what we have sin a black man is in charge”? Does ignorant racist sound familiar to you, probably not because most racist pigs don’t have the intelligence to know they are racist pigs. That is one of the biggest problems in Belize racism and Lord knows especially in Belize we do not need to add that ugliness to the equation. Now we know why Belize is in the state it is in. People with as much hate as you.

  9. JMartin says:

    A Black Man’s Doing? When countries in S.W. Asia attempted to nationalize thier oil, the U.S., Britain and other europeans invade through covert or overt aggression. S&P and other systems are put in place by european thinkers to dissuade small countries from nationalization and control of their own political and economic destiny. However, Nestor Kirchner from argentina showed to blueprint to getting out of debt from the imf and other mf. The u.s debt ceiling chirade was an effort to further cut aid to th poor and give more loopholes to corporations like G.E. which did not pay a dime in taxes after making billions in revenue. We have to suffer to nationalize , but u.s did also during american revolution. That was an economic/taxes war. Don’t despair Belize.

  10. CEO says:

    All this mess do not mean a dam thing to poor people especially in Belize. This only mean that rich people will lose money.

    The poor will still live hand to mouth!

  11. Ricky Malthus says:

    To Concerned Citizen, There was never a day that Belize didn’t have hard times. The entire history of Belize was and is hard times. Times were even harder when the British governed since there was no escape value like exists with USA visa system. But I digress. For the past three and a half decades poverty was very bad but was mitigated by the transfer payments sent by belizeans in USA not Britain. Now that economic globilization is taking its toll, not enough funds are available inasmuch as there is dis-savings by Belizeans In USA to stay afloat. But no one is looking for scapegoats to crucify. Mr Concern must look at the various segments of the economy and see where Barrow exacerbated dismal economic conditions rather than try to alleviate them. Do you think that it would to give Belizeans the jobs valued at more than $10 million annually than to give those jobs to people of his ilk.

  12. OR says:

    Do we have to become like Spain and Greece and Portugal to say that we are bad? because we may be better off than them, do u think we are fine? come on people….we don’t have to wait until we can’t do anything to realize where we are and that we are really bad? We need to compare and try to be like like other countries that are doing well, and not compare ourselves with the lowest ones….

  13. Indian Woman says:

    Very true that a black man is in charge and look what we have. Black people should not be in power. period. Next…. all you people should put your energy into getting him out and a better leader who is qualified in.

  14. William Roberts says:

    As I write this the US just got downgraded from it’s 1917 AAA rating to AA rating. The people of Belize must turn this country around and now is the time to do it before it gets worse. I came to this beautiful land to retire solely because I knew & know the potential of this great land.

    It is easy to look at what is occurring here and point fingers but it appears to be difficult for anyone to come up with solutions for Belize’s ills. Without going into much detail in this comment I would submit that there is a Formula of Five Basic Pillars written by Thomas L. Friedman which could serve Belize in it’s efforts:

    Educating the work force up to and beyond whatever technology demands;
    Building the world’s best infrastructure of ports, roads and telecommunications;
    Attracting the world’s most dynamic and high-I.Q. immigrants to enrich the universities and start new businesses;
    Putting together the best regulations to incentivize risk-taking while curbing recklessness (not always perfectly); and
    Funding research to push out the boundaries of science and then let [Belizean] innovators and venture capitalists pluck off the most promising new ideas for new business.

    This is submitted in my humble opinion.

  15. Liberty and Freedom says:

    S&P just downgraded the USA too. There are standards that are followed to grade the financial stability of a country. The USA cannot get , nor do they want to get spending under control. When better than 42% of Americans live off welfare (entitlements) and that is how Obama gets votes, you have a crisis. Belize has until now aligned it’s economy to the USA (the monetary standard is 2 Belize dollars for one US dollar). Belize would be better off aligning it’s monetary system to the Swiss franc – a strong currency. In order to get a better S&P rating, Belize must become a strong producer and exporter of goods; we must reduce crime to attract tourism and foreign investment; we must let capitalism thrive in a free market economy unhindered by the GOB; we must end the move by Barrow to nationalize everything and surpress our rights as a free people.

    There are many good ideas put forth in several of the comments above, however, Belizeans expect some sort of Messiah to step forward and save the country. It takes individuals to form a united front and make changes to the corrupt political self serving people that dominate both parties. There needs to be a focus on doing what is best for Belize and Belizeans, not those that enrich themselves through unbridled power and tyranny.

  16. Orangewalkeno abroad says:

    I read a lot about numdskuls.If people in our beloved Belize do not realize how the World super power looks at there ratings of AA- instead of AAA .The Us gov is worried about its economy and borrowing access, as Barrows own B wathever,sounds like a skool drop out B is a perdida.U r not A lawyer but a liar and u have stolen what rightfully belongs to me and my family through the courts of law and chief justice chief a- BIG A wich,This is just and eg.of el calbo inferiorty complexity and abuse of our Belizeans,mind U I will not forget and justice will be served.Dont let this happen to u belizenos.

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