Government to pay up USD 4.42 million

Belize Prime Minister Barrow has recently asked the court to make 2 declarations with regards to the payments.

The Barrow administration says that it needs more time to pay off the debt. To remind, it inherited an USD 8.8 million debt from the past Musa government.

The problem is that the investment company Newco Limited that was short-changed out of an airport management contract says it will not wait any longer. This company (previously known as Lufthansa) is pushing hard for the USD 4 420 587 awarded to it by an international tribunal on June 23, 2008 when Newco sued the Musa government for breach of contract and won. It should be noted that the award comes with an 8% interest penalty, compounded quarterly from the date the award was issued.

Barrow said that his government has turned to the Supreme Court of Belize for an easement to ask the court to make 2 declarations.

The 1st declaration is to fix the date on which the interest commences as the date of the delivery of the court judgment and not June 23. The 2nd declaration is to state that the Belize Government pay the money in Belize dollars instead of the USD demanded by Newco.

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