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Sep 16, 2019

Fiscal Agreement Signed; CitCo 1 Step Closer to Floating New Municipal Bond

The government approved an eleven-million-dollar municipal paper for the Belize City Council in August, today, CitCo and Heritage Bank Limited officially signed an agreement for the floating of the bond. With the bank as the fiscal agent, it gives investors, mainly corporate citizens, additional security on their investment in municipal bonds. The monies invested will be used for development projects across the city and to alleviate the annual cash flow issues that the City Council faces during the year. The bond takes the interest as low as three point four percent as to the normal ten percent that translates to substantial savings for the council.  Mayor Bernard Wagner explains how the agreement governs the process.


Bernard Wagner

Bernard Wagner, Belize City Mayor

“It’s a fiscal agreement which governs the protection of the bondholder, it governs how we allocate funds, it provides for cash flow; how the cash flows from one account to the next. That is what this fiscal agreement really entails.  We have to launch our prospectus and that is a booklet which contains the rate of interest that we would be paying. It would also entail our financial position. That is always important to any investor that there are information in that booklet which gives them that level of comfort that hey I could purchase these bonds, that these instruments are viable instruments. So after the prospectus is launched, then we would open up for prospective bondholders to purchase and thereafter close it at a given date as well.”

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.

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