Regulatory Framework for Capital Market

John Briceño

A bill for an act to provide for the regulation of security business and activities in Belize was presented in the House today.  The bill, according to PM Briceño, will provide the regulatory framework for the establishment of a capital market in Belize.  For those who may be unaware, a capital market is where buyers and sellers engage in the trading of financial securities like bonds and stocks.  This, says PM Briceño, is all a part of his administration’s plan for economic recovery.

Prime Minister John Briceño

“Simply, what we are trying to do is to have, we all recognize that in Belize the access to credit is limited to a few traditional banks, credit unions and pawn shops where the interest is outrageous, almost bordering on criminal. Now, the interest margin, and that is the margin that you charge the customer and the interest you pay on deposits, it is very wide. It is about seven percent. And, in many jurisdictions where there is a financial market, that spread, as you call it, is a lot smaller, probably an average of three percent. Now such high-interest margins in the financial sector of Belize provide for the development of a capital market, as recognized and supported in Plan Belize. That is what we want to do, in our manifesto and the economic development plan, with to objective of enabling access to cheaper credit to the businesses and individuals in Belize. Now the Security Industries Bill seeks to provide a regulatory frame worker for securities business in Belize that is consistent with international standards and practices. The objective of the Bill is to support the development of Belize’s Security market in Belize in an orderly manner. We are providing for the protection of investors, ensuring fair, efficient, and transparent markets, reducing systemic risk, and protecting the reputation of the jurisdiction.”