Central Bank Limited Revokes PD7, Domestic Banks Accept Voluntary Measures

The Central Bank of Belize announced on Tuesday that it has withdrawn Practice Direction Number Seven Act (PD7), following deliberate negotiations and collaboration with the domestic banks. PD7 sought to impose restrictions on certain fees and penalties by the banks. Belize Bank Limited challenged the legality of the act and in January, the High Court granted the bank an interim injunction to put a temporary halt on its enforcement. According to the Central Bank of Belize, further discussion was held to resolve any objections related to the act. As a result, the domestic banks have agreed to voluntarily implement a list of six measures as of June first. One is that no fee will be charged for accounts closed within one to three months of opening. Another is that no fee will be charged for the issuance of letters for the purpose of salary release or cancellation. Additionally, the fee for withdrawal at ATMs of the same institution from which the funds are being withdrawn will be capped at twenty-five cents. Today, Senior Counsel Godfrey Smith, attorney for Belize Bank Limited, told reporters that the bank is comfortable with making the required adjustments.

 

Godfrey Smith, S.C. Attorney-at-law

“We got here through a process of discussion between the Central Bank of Belize and the banks who stood to be affected by PD7. There were discussions and as you rightly point out, Central Bank agreed to withdraw PD7 and the banks will put certain measures in place on the first of June and subsequent to that date as well, to voluntarily put in place certain measures.”

 

Reporter

“Does the bank now have some comfort with this reduction of ATM charges going forward?”

 

Godfrey Smith

“I would have to say so otherwise they would not have agreed to voluntarily implement the measures to be implemented on the first of June and subsequently. I believe I saw some ad from the Central Bank on the news showing the measures that are to be implemented. But the answer to question is that if they were not happy about it or thought that it would be deleterious, they would not have agreed, and they have agreed to voluntarily implement these measures.”

 

Belize Bank Limited has undertaken to discontinue its claim upon the revocation of PD7.