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Sep 2, 2013

The National Bank of Belize opens its doors; initial interest rate is at 5.5%

The National Bank of Belize Limited was established in April 2013, and today its doors were opened to the general public in Belmopan. The state-owned bank will primarily provide concessionary credit to public officers, teachers and lower-middle income Belizeans. Suitable to the occasion, the launch was a red-carpet type affair of government leaders, public officers, dignitaries, diplomats, executives and general supporters of the initiative. There were balloons, a band and plenty of back-patting to greet the birth of the G.O.B.’s new bouncing baby bank. Mike Rudon was in Belmopan and has the story.

 

Mike Rudon, Reporting

There was plenty of high-level support to greet the opening of the National Bank of Belize today. It’s an initiative which has been in the works for some time now…and while it’s far too early to offer comment on the bank in practice…the government has nothing but praise for the idea behind the NBBL.

 

Joy Grant, Chair, NBBL

Joy Grant

“Initially, the National Bank of Belize will provide mortgage financing for construction to first time home owners with fifty percent of their regional equity financing for public officers and teachers, and the remainder for the general public. In a few months our range of banking offerings will expand to include other financial products and services.”

 

Prime Minister Dean Barrow

“What is happening here this morning is part of a grand design of a far larger scheme of things. I have long complained that in an international environment of all time low lending rates, the inability of our commercial banks to seriously bring down the cost of money to consumers is a scandal.”

 

And that scandal resulted in the birth of the National Bank.

 

Dean Barrow

Dean Barrow

“All I and Cabinet know that it is a situation that we could not any longer countenance. It is unacceptable that the spread between bank deposit rates and bank lending rates keeps widening in favor of the banks. And in this regard, the government refuses a minute more to be the dog that only barks. And so, enter the National Bank.”

 

And the National Bank is entering the scene in a big way. There will be no refinancing of mortgages from other financial institutions because the bank is focusing on first time home-owners. And loans will be for a maximum of one hundred thousand dollars. But that doesn’t take away from the good news which the Prime Minister was more than happy to offer.

 

Dean Barrow

“For those that we will be servicing, our lending rates will be unbeatable because our bottom line is people and not profit. That is why our introductory offer to the people of Belize is an unbelievably low five point five percent.”

 

Amid the euphoria of being the harbinger of good news for Belizeans, there was still room for reality – reality which can spell disaster for the brand new bank.

 

Dean Barrow

“The people for whom all this is to be done must do their part. When you borrow, you have to repay. And if we run into trouble because of delinquency even at this first stage, we will never reach level two. I have every confidence, though, that especially our teachers and public officers know exactly how high the stakes are, and will partner responsibly and successfully with government to make our national bank the pride of Belize and the envy of the Caribbean.”

 

Just about the only criticism of the bank so far has been caused by cynicism, bad experiences in the past and a general distrust of politicians. So will the National Bank turn into a political pork barrel…a national grab tub?

 

Dean Barrow

“The Managing Director, the Board of Directors and the staff all know that that is absolutely a no no and it simply won’t be countenanced. There’s just no chance. It can’t happen and it won’t happen. While it’s not going to be an issue because we simply won’t tolerate it…it’s as well to signal right from the start to people – if we are to make a success of this thing and we are going to make a success of it we really have to as you say treat with it on the basis of the highest professional standards.”

 

According to the Prime Minister, he expects that the initial demand will outstrip the twenty million dollars which has been used to capitalize the bank. He anticipates a trip to the House to allocate more monies to the bank by Christmas. Mike Rudon for News Five.

 

The Managing Director of the National Bank of Belize is Jose Marin. Doors opened for business this afternoon.

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16 Responses for “The National Bank of Belize opens its doors; initial interest rate is at 5.5%”

  1. put your money in paypal says:

    Between BILK and this new UPD NIBBLE bank; the govt’ running the electric & phone companies amongst other mismanaged businesses; an international bond rating below Greece; an education system at the bottom; and these brainiac corruption officers running the country; what could go wrong???

    print more money for the locals, wait all those Belizean dollars are printed, nobody wants them, give it to the locals. Sell illegal passports and visas to raise US dollars.

    Good news is for these first time UDP homeowners, is when the bank goes belly up, they get to keep the property, because the builders are going to get screwed and paperwork will be lost.

    “What is happening here this morning is part of a grand design of a far larger scheme”

    I am sure, Deano!
    Be Sociable, Share!

  2. christian says:

    The bank is a great idea. It hurts so bad to be paying 18% on an auto loan at this present day. I seen adds from US banks daily advertising auto loans as low as 2.5%

  3. Concern Citizen says:

    This is another one of Deano bird brain scheme where die hard UDP supporters will get loans, and the number of non payment will be so high that the bank will have to fold so Deano will have to forgive the loan, just to try to win the next election again. The precedence have been set, and the sharks are lurking for the feast.

  4. Buju says:

    Well i am more than happy because i will try my best to secure a home for me and my family….

    Say what you want but i will be the owner of my house

  5. Deron says:

    Populism is the most idiotic form of economic policy. So there will be no hustling and corruption at this new National Bank, right? After all the crap at DFC, Ministry of Natural Resources (rosewood anyone?), Lands Dept, Immigration…and the sheer incompetence at ministry of health, we are to believe that the government will run this bank flawlessly?

    If you believe that I have an election to sell you…in about 3 years.

  6. Prophecy says:

    So then, while an unprofitable bank is subsidized at Taxpayer expense (just like BEL right now), the mostly UDPs that will get mortgages will of course get their unpaid loans forgiven right before the next election, no? At whose expense? The same ones who foot legal bills to fight Ashcroft, taxpayers. At least its more sophisticated than just taking taxpayers money directly and giving it as handouts before elections…oh wait, they do that too LOL!

    Brilliant politics, tragic economics.

  7. datjustgudfudem says:

    @ “put your money in paypal” you just jealous because your PUP party mis-managed all Belize’s finances in thei time in office….remember your SUPER BOND…..don’t forget now; then now you wishing bad for the system?……what happen you don’t want people to up-lift themselves? they must always serve you…….get over it…….look and maybe you learn something…….

  8. Robert says:

    Great Idea yes, great outcome? probably not…. The Reason why? This bank will not be managed by honest decent citizens looking out for the best interest of the country and not themselves.

  9. Mewse says:

    Why reinvent the wheel? DFC already offers Mtg to first time home owners, with a stroke of a pen Dean could make DFC provide 5.5%
    UDP Loans will be written off come election day, this is the larger Scheme

  10. Concerned says:

    If you live out of Bmp how can you request for a loan. Will they have a website as other banks.

  11. Orlando says:

    There is a lot to talk about and blame to go around, but has it ever accrue to anyone that the APR on a loan has to do with the individual credit? If you pay on time the interest rate will certainly be lower than those who is credit challenge. Auto loan here in the U.S.A. is at zero % for those that’s qualify and you can get 0.9% for up to 60 months, but credit have a lot to do with it. Now there is one more thing I would like to mention, any BUSINESS go belly up and paper work lost was not a real business! It have more to do with mismanagement, this is the computer age and if they fail to utilize the system they should never be in business.

  12. Eye in the Sky says:

    The far larger scheme will be Barrow seizing control of all the other banks in Belize, Atlantic, Belize, Alliance and so on.
    They will be renamed after his bank and the UDP’s will get richer.

  13. Liberty & Freedom says:

    This is an example of redistribution of wealth. Who will pay for this boondoggle when it goes belly up? The scheme is called Deano getting richer. I wonder who in his family will be part of the governing board? He has other family members involved in his other “takeover ” operations. Follow the money….

  14. Mystic says:

    Crybabies need to shut the hell up and stop spreading negative around. Time to give it a chance and see how it goes. Time to get your rump off the bleachers and get into the playing field to see if you could do something positive to build Belize. Stop spreading your poison around, we don’t need it

  15. marley says:

    Does any restriction applies and wht are they?

  16. believe in great things says:

    sometimes i wonder about the people posting garbage about UDP… people in a whole will always have a lot to say about the UDP simply because they don’t like to see progress.. The UDP has and is still doing great things for Belize, cleaning up the mess that the pup created.. so before you nail Honorable Dean Barrow try to bury your pup leaders for the mess the country was in years back. We believe in Dean Barrow and he has proven himself

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