Taxpayers acquire BTL’s $45 million debt with Belize Bank (Turks & Caicos)
Posted: 20/11/2009 - 10:06 AM
Author: Adele Ramos - adelescribe@gmail.com
Central Government has taken over the $45 million Belize Bank debt that Belize Telemedia Limited (BTL) took out with the Turks and Caicos branch of the bank nearly two years ago, in December 2007.
When the Government of Belize acquired Telemedia back in August—on incorrect claims that it would put an end to litigation with the Ashcroft group of companies—it acquired the company with two major debts: a $19.2 million loan for the acquisition of Intelco assets (this one due to GOB), and a $45 million loan (US$22.5 million) with the Belize Bank, which BTL claimed it got to purchase some shares formerly held by American Jeffrey Prosser, and also to make capital investments.
A government release today stated categorically that the debt is no longer BTL’s but the government’s—which we translate to mean taxpayers.
The release informed that the government took over the mortgage and so, legally, BTL owes no debt to the Belize Bank.
“The US$22.5 million is now a matter wholly and exclusively between the Bank and GOB,” its release said.
BTL chairman, Net Vasquez, corroborated this report. He told our newspaper Wednesday night that the government took over the debt to avoid the assets being crow-footed by the bank in the event that a default would have been declared at the time of the government-takeover. Vasquez had previously told us that the loan was already in arrears.
We pointed out to him tonight, however, that the last item of the order the government had issued for the acquisition of BTL stated that all proprietary and other interests held by the bank in respect of the $45 million loan was also being acquired as property by the Government of Belize.
According to Vasquez, the assets in question, including the company’s headquarters and properties around the country are now in the hands of the government but still in the name of BTL.
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