7 News Belize

Central Bank Buys Shares In Telemedia
posted (July 20, 2011)
And while that BSI matter is now coming to the fore - one that has slipped under the radar is the central Bank's investment in Telemedia.

There was no public announcement in May when the banking sector regulator invested $20 million dollars in Telemedia shares.

But the share purchase has been criticized by the opposition because they say the Central Bank legislation does not permit investments in shares.

The Prime Minister says they did take legal advice on it - but there is an important contingency...

Jules Vasquez
"There is some dispute as to whether the Central Bank can invest in securities and such instruments."

Prime Minister Dean Barrow
"They took legal opinion from 2 sources, and there's no doubt at all`, based on the legal opinion, that they can't."


Jules Vasquez
"Is there a buy-back clause in it?"

Prime Minister Dean Barrow
"Yes, Government has undertaken to buy back at the appropriate time if that is the wish of the Central Bank."

Jules Vasquez
"Why was that necessitated, to minimize the exposure to risk?"

Prime Minister Dean Barrow
"Well, I suppose you'd have to talk to the Central Bank people, but we do not see it as a problem. We Believe we're in this thing, especially now with the entrenchment in the Constitution, for the long haul. So we have no difficulty at all with such a clause."

The 20 million dollars investment is equivalent to 8% of Telemedia's shareholdings - which does not entitle it to a seat on the board of directors.

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