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Jun 14, 2012

Mahogany heights and students get DFC write-off

Dean Barrow

Despite the grim economic outlook and a huge budget deficit, at Wednesday’s press conference, the P.M. said that he intends to strike off loans for the property on the Western Highway known as Mahogany Heights, as well as some housing and student loans held with the Development Finance Corporation.  The P.M. explained who would qualify for the scheme and says the write-offs wouldn’t affect the bottom-line.


Dean Barrow

“As proof of our resolve, never to let go of our people centered relief programs and our poverty alleviation focus, I want to announce now the implementation of something we promised even before March seventh General Elections. Probably on the same day as the budget presentation, we will be going to the house to seek approval for our DFC write off program. And this is program that will offer relief to holders both of housing loans and student loans. In the first category; loans—this is for small loan holders. In the first category, loans in an original amount of twenty thousand and less will be completely forgiven provided the borrowers have already paid off twenty percent of their loan indebtedness. And in the second category, all student loans of six thousand and less will also be completely forgiven also provided that the borrowers have already reduced their loans by twenty percent.

With respect to Mahogany Heights, government will write off all those loans with no conditionality. It is in an effort to avoid the charge of promoting moral hazard that we had made the other write offs dependent on some degree of prior loan payment. There is a crucial difference with Mahogany Heights and that difference is—that you will all remember—the then Administration paid money for the land on which that housing site was located to a crony. It then turned out that that crony was not the true owner of the land so government did not get the proper title. The result is that in term the title of the homeowners at Mahogany Heights is also dubious. This administration; in fairness and in equity, cannot see asking people to continue to pay for properties to which government cannot now and for the foreseeable future guarantee undisputed ownership. So we are writing those things off completely. In lieu of what I said earlier about budgetary constraints and oil revenues, I make clear that the write offs will no way affect government’s cash flow. DFC owes government a debt that is payable sometime around the year 2018 and the cost of the write offs is being offset against that future liability of DFC to GOB. So it will cost us nothing in terms of cash flow now.”


Leading up to the March seventh elections, the Prime Minister also wrote off housing loans held with the Social Security Board. 

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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8 Responses for “Mahogany heights and students get DFC write-off”

  1. RedBwai says:

    Cheap ……..!!…wat about the people who borrowed more than $20,000 and now have pending far less dan $20,000 remaining to be paid?? What about them? what relief is in it for them?? not even a lower interest rate…not nadas….$20,000 was NOT the threshold with the SSB loans they wrote off, it was way way higher about $50,000 an less if i remember correctly….so why squeeze on the people who have pending DFC loans over $20,000…this jus simply isnt fair and he knows it…come on PM dont be one sided…if u will help…help as much pple as you can…not jus a selected few..

  2. Maria Marshall says:

    It is still a very bad let-down to all those people who purchased land there. When will Belizeans ever be able to trust those they elected and put in power !!!

  3. A Jew says:

    This write off plan is only a short-term strategic move by the PM to get the Belizean people mind’s off the real bigger problems. Like an old wise man said ” Someone gave me 50 dollars today to vote for him, but tomorrow, the day after tomorrow and all the other days I will still hungry. Eat today and starve tomorrow”.

  4. Jan says:

    In my opinion its really critical for the govt to see the real picture. Write offs only benefit the people who it doesnt benefit the whole country. GOB most find other solutions for the economy to grow make more job.

  5. lino says:

    again rewarding delinquents-people who have morality and resilience pay what they owe.

  6. student says:

    I borrowed more than 30,000 from DFC. I feel like this loan will never get paid off – i have been paying for what feels like forever. What about ppl who borrowed big???? and Pay on time monthly??? and have already paid of more than half already???? And what about the ppl who’s student loans have since been moved from DFC to another institution??? that are still burdened by these never ending payments???

  7. Jose Perdom says:

    When will you diehard PDP’s ever be satisfied. Nothing the Government does is ever pleasing to you. If the UDP Government could get you all a free pass to the “Happy Hunting Ground”, you still would complain. I presume that only the loosing PUP’s can satisfy you all. B!t@H, B!t@H, B!t@H, complain, complain, caomplain is all you all can do.

  8. soulsista says:

    Rass man 6,000 from dfc is nothing I have a student loan for 20,000 what happen to us who were not given scholarships like politicians children and had to borrow loan seems we will be indebted forever cho man

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