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Dec 16, 2011

PM Barrow says excess liquidity should send loan interests rates down

The House of Representatives met in Belmopan this morning; two bills were introduced and passed, but we will have more on that later. The sitting ended by midday and we were gratefully spared of the usual theatrics. Outside the House, the Prime Minister fielded questions on a wide range of issues. In our newscast on Thursday we reported on the dismal state of the economy as it pertains to an excess cash reserve at the Central Bank.  Over the past thirteen months liquidity has ballooned from forty-eight and a half to almost a hundred and ten million dollars, forcing several commercial banks and credit unions to refuse fixed deposits. The situation at hand is such that the rate of deposits are greater than the loans being approved.  According to Prime Minister Barrow, that imbalance has created a fiscal environment where banks are now reducing their lending rates.  While those fees are in the range of eight point five to nine point nine percent, consumers remain skeptical in accessing the surplus in light of the weak economy. But P.M. Barrow, in an interview this afternoon, said that he was unaware of a freeze in deposits.

Dean Barrow

Dean Barrow

“I am not aware that the banks are not accepting deposits but I have spoken from time to time about excess liquidity, most recently at the economic forum that we had and Ive said that to me the fact of excess liquidity ought to be driving down lending rates.  I was told that Heritage Bank is offering loans at 9.9% and thats a step in the right direction.  I dont know that, I really would have to look at what youre telling me, if the banks have stopped accepting money.  That makes no sense to me at all.”

Isani Cayetano

“First Caribbean International being one of those banks.”

Dean Barrow

“I really have to check on that but the question of the deposit rates is altogether another matter except theres a temporary halt while they realign the rates.  While they say to people well look, we use to offering you 6% or 7% now were going to be offering you three.  Theres a floor, as I understand it, on the deposit rates but if deposits are not being accepted I am sure that is temporary while this whole question of rates is being sorted out by the commercial banks.”

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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3 Responses for “PM Barrow says excess liquidity should send loan interests rates down”

  1. blackberry says:

    Unaware again. how many things of vital interest to belize is this PM unaware of ?

  2. Earl Grey says:

    The BANKS NEED TO DROP THEIR SKY-HIGH INTEREST RATES!!!!!!!!!!! 10-12% is a good start!!!

  3. Corozal says:

    What type of PM is Mr Barrow? He is the Min. of Finance and he was not aware? Not a good PM for our country!

  4. subKonshus says:

    Obviously if someone is unaware of the reality around him you can’t expect him to be real…..He thinks his government is doing pretty well….he feels confident in calling early elections….he believed the 9th Amendment was the “will of the people”. PM Barrow is an Avatar living in Belizeotopia!

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