PM Promises Government Assistance to Save Cooperatives

The Northern Fishermen Cooperative is, once again, millions of dollars in debt. This time, with the Belize Bank to the sum of eleven million dollars. For a decade now, the cooperative has struggled with managing its finances and meeting loan payments and has been at risk of foreclosure on several occasions. While the situation is not favorable to the cooperative, the Holy Redeemer Credit Union recently offered to acquire its debt and restructure its financing plan. However, that action was blocked by the Central Bank of Belize because of the high risks involved. Today, Prime Minister John Briceño spoke to the media, saying that the government is trying to assist Belize’s largest fisheries cooperative with escaping the financial hole it has fallen into.

 

Prime Minister John Briceño

“It is indeed historic, it is when you think about the development of this country and about fisheries, you always think about Northern Fishermen’s Cooperative. And as a government, we have the responsibility to be able to see how we can help them to keep the cooperative movement alive. What we have done, the Central Bank has expressed serious concerns as to the viability of that cooperative and its cash flow. And I want to publicly thank the H.R.C.U. who have said we are prepared to work with them because we believe that by reducing the interest rate and the terms making it longer terms that they believe that it can succeed so we had a meeting with them. I think was last week Monday with the credit unions with last Wednesday with the credit unions with the cooperative and the head of the cooperative department Central Bank, Belize Bank all of us are around the table and we’re working on a plan. And some of the plans have to do is that the registrar will also now sit on the board to ensure that they do not take certain decisions that can affect them such as lending to private investors because the members, outvote them. And the membership, not the board. And so they felt that they are under the gun to be able to have to approve this. But we are going to step in to be able to ensure that does not happen. That we restructure the management of the cooperative and do everything possible to keep that cooperative alive.”

 

Reporter

“So will the Central Bank of Belize allow H.R.C.U. to take over that quite impaired debt?”

 

Prime Minister John Briceño

“It will allow depending on what are going to be the terms. We’ve already spoken to the Belize Bank. We’ve asked the Belize Bank; we’re asking them to write off their interest and their penalties so that so that we can save the institution. So, I think that the central bank will give an agreement provided that these things are met. And so once that is met, I think we’ll be able to do that.?

 

Reporter

“Will it be able to meet payroll tomorrow? You know it was it’s overdraft was cut.”

 

Prime Minister John Briceño

“That’s a question you have to ask him. I don’t know to that level of details.”