Last night we told you about the quite remarkable affidavit sworn to by the Governor of the Central Bank. In it he says, quote "the Belize Bank's performance is deteriorating" and "if left unchecked and unresolved could lead to the bank becoming financially unstable."
Today the Minister Of Finance didn't quite distance himself from that grim characterization, but he did make it clear that the Belize Bank is not in any kind of trouble.
Hon. Dean Barrow, Prime Minister
"I think the Governor of Central Bank as the chief regulator has every right to be concerned but I don't think that we ought to be panic stricken. The Belize Bank is still the largest bank in the country, still has a great deal of assets. I am confident that under the guidance with the regulation of the Central Bank that the Belize Bank can come out of whatever difficulties are attached to this ratio of non-performing loans. So I say again, cause for concern but not in my view cause for alarm."
Jules Vasquez
"So as far as you are concerned the bank is sound as a going concern, people should not be worried."
Hon. Dean Barrow, Prime Minister
"I don't think there should be any kind of run on the bank. I don't think people feel they need to withdraw their monies. I don't think there is anything to suggest that that sort of reaction would be justified at all. Clearly I am saying that the fact of the large level of nonperforming loans is a matter for concern and that is why the Central Bank, the regulator has intervened and is requiring the bank to take certain steps, but I think that's as far as it should go. Nobody should be in any rush to believe that the underlying fundamentals of the Belize Bank are in any danger of collapse. I absolutely reject any such suggestion."
Jules Vasquez
"Was the Governor of Central Bank then incautious in his remarks?"
Hon. Dean Barrow, Prime Minister
"I haven't seen his affidavit, but the Governor of the Central Bank in my view was properly discharging his function as regulator. The IMF was here, you saw their statement, while they didn't single out the Belize Bank, that statement spoke to difficulties in the banking system as a result of this large ratio of nonperforming loans."
The governor of the Central Bank declared his position in an affidavit in support of a case where the Belize Bank was requesting and was refused an injunction against the Central Bank.
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