For months we've been reporting on the process called de-risking, where big US banks are cutting off their correspondent banking relationship with Belizean banks. For a small, local bank like Heritage - they've taken the full force of the blow - and recently, the Prime Minister said that even the banks that do their credit cards businesses might be cutting them off at the end of February. Today Managing Director of Heritage Steve Duncan told us that they will find a workaround:..
Hon. Steve Duncan, Managing Director, Heritage Bank
"It is correct that the bank who was processing for us the credit cards - the settlement bank specifically has indicated that they will no longer be able to it for us after February. I think they are doing it for the month of February and that's the last month. So between now and then we'll have to work out an alternative arrangement or revert to the manual process that VISA card and MASTER card make available to its members. So I don't think cards will come to a halt. I don't think that will happen. Even though the possibility exist, I don't think it will happen. Because well VISA and MASTER card they don't want to lose the business anyhow. Remember its business for them. So we will have a backup plan in place to help people in situations such as these."
The Prime Minister has planned a trip to the US State and Treasury Departments to try and urgently address this looming crisis in the banking sector.
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