IDB issues USD 25 million loan to Belize

On December 7, 2006, the Inter-American Development Bank (IDB) announced the approval of a USD 25 million fast-disbursing loan in order to support the government’s agenda of reforms aimed at restoring macroeconomic and financial stability as well as improving its business climate and raising investors’ confidence.

Belize has showed progress in challenging serious macroeconomic imbalances by means of following a homegrown strategy. The country’s authorities have been committed to maintaining stability through a comprehensive medium-term economic programme. Reaching a cooperative agreement with private creditors on restructuring its external debt on the completion of the programme would be the top point of it.

The IDB loan will give the government of Belize an opportunity to strengthen its fiscal position raising revenues and cutting expenditures. Undertaking these measures Belize has reduced the fiscal deficit from 8.7% of GDP in 2004 to 3.3% in 2005.

The loan will consist of 2 tranches. The 1st one of USD 10 million will be given first, and the 2nd one of USD 15 million will be given later as Belize goes forward with its reforms. The Ministry of Finance is charged with the execution of this programme. The loan is given for 20 years, with a LIBOR-based interest rate and a 5-year grace period.

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