7 News Belize

Ysaguirre Frowns On SSB Loan To Santander
posted (February 8, 2016)
The Social Security Board has agreed to lend 12 million dollars to the Santander group - and it's raised some eyebrows. Some say that Santander is a private investment and shouldn't use local resources, while others say the fund's money shouldn't be exposed to that kind of risk. But, the Governor of the Central Bank has a different take on it. Santander has already gotten a syndicated commercial loan - with several banks - local and international - putting together to make that loan. And so, Santander's indebtedness became - what is called - of systemic importance because if the company fails, it could pose a risk to the banking system.

And that's where Social Security came in. They are not regulated like a bank - so their 12 million dollar loan to Santander did not have to get Central Bank approval. And that's why the governor of the central bank, appearing yesterday on KREM TV's Sunday Review with Ya Ya Marin Coleman said they need to be cautious:..

Glenford Ysaguirre, Governor - Central Bank of Belize
"I wasn't aware at least of the Social Security Board component and that is something that had indeed change the formula and increase the domestic exposure. So I would want to hope that those at Social Security Board who made that decision are looking at the wider financial stability implications of it and have put in place their measures to mitigate that."

Later today, Ysaguirre stressed to LOVE FM that Santander is a local company.

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