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Hon. Dean Barrow - Prime Minister of Belize
"The launch of the National Bank of Belize is an accomplishment for the ages."

The ribbon was cut this morning, the plaque unveiled and The National Bank of Belize on Forest Drive in Belmopan opened for business this afternoon. It is as the Chairman said, a different kind of bank:

Hon. A. Joy Grant - Chairman, National Bank of Belize
"A bank whose focus is on serving the financial interest of all Belizeans, whosegoal is not about maximizing profit - but about providing the working class Belizean with the financial assistance and knowledge they require to improve their living standards throught the construction."

The bank has a startup capitalization of 20 million dollars:

Hon. Dean Barrow
"Ladies and gentlemen, the bank is starting with 20 million dollars in capital - all of which is contributed by the government of Belize. I have made no secret of the fact that we have sourced that equity from the Petro Caribe Loan Funds."

Half of that 20 is earmarked for lending to teachers and public officers:

Hon. A. Joy Grant
"Initially, the National Bank of Belize will provide mortgage financing for construction to first time owners with 50% of their original equity financing for public servants and teachers and for the remainder for the general public."

Hon. Dean Barrow
"Loans will be for a maximum of $100,000 and this is for first time home owners so that there will be no refinancing of existing loans held with other institutions."

And while that is the practical purpose that the bank will serve, it is also an instrument of monetary policy, as a driver of lower interest rates in the banking sector:

Hon. Dean Barrow
"I have long complained that in an international environment of all time low lending rates, the inability of our commercial banks to seriously bring down the cost of money to consumers, is a scandal - it is unacceptable that to spread within bank deposit rates and bank lending rates - keeps winding in favor of the banks. In this regard, this government refuses a minute more to be the dog that only barks."

The bite is a very low lending rate:

Hon. Dean Barrow
"Of course, those that we will be servicing - our lending rates will be unbeatable because our bottom line is people and not profit. That is why our introductory offer to the people of Belize is an unbelievably low 5.5%."

`And while that should shock the system, in socialized banking built of public not depositor funds, there are inevitable pitfalls which if the bank is to live up to the historical hype, must be avoided:

Hon. Dean Barrow
"The National Bank cannot be a grab tub or the political pork barrel into which, for example, the previous administration the turned the DFC. So the people for whom all this is to be done, must do their part - when you borrow, you have to repay."

Jules Vasquez
"Will the highest standards of prudential management be observed in running this bank as it would be for any commercial banks?"

Hon. Dean Barrow
"We will be just like any other commercial bank. I'm glad you asked the question because while it's not going to be an issue, we simply won't tolerate it, it's as well to signal right from the start to people. If we are to make a success out of this and we are going to, we really have to treat with it at the highest of professional standards. With the president of the NTUCB, so there would be a readymade whistle blower if ever things were to go array but it won't go array as long as I am at the helm and as long as Ms. Grant is Chair of that board."

And while they hope to keep tight controls, Government also expects to shortly infuse the bank with more funds to lend:

Hon. Dean Barrow
"I suspect that the demand will be over the top and let me signal from now that I expect to come back to the National Assembly before Christmas with another motion to put some additional equity into the National Bank because I feel that the 20 million will not be able to take care of even the intial demand."

The plan is ultimately to take the National Bank to the next level and turn it into a full service, deposit taking, credit card offering institution as soon as we can."

The Managing Director of the Bank is Jose Marin, a career banker and the former president of Provident Bank, Belize. Board members include Deputy Financial Secretary Marion Palacio, president of the National Trade Union Congress of Belize Dylan Reneau, and John Mencias — GOB's point-man for the Venezuelan Petrocaribe Initiative.